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Content farm firm Demand Media files for IPO
- byrneseyeview 16y agoIt's hard to measure their profitability, since normal accounting doesn't capture how they work. The money they pay for content should be considered an "investment," and expensed over the next few years, not all at once. An article they create today will probably still be getting visits in five years. I would love to see their expected future traffic, and current cost, for the content division. What you might see then is that a piece of content costs $X, and earns $.75X... then $.75X next year, and the year after, and so on.
- byrneseyeview 16y agoSpoke too soon: [W]e have paid substantially all of our freelance content creators upon the creation of text articles and videos, rather than on a revenue share basis, and we capitalize these payments.
- keltex 16y agoI think this is a push by the investors to cash out. It boggles my mind (according to techcrunch) that they have $355M in financing. They are heavily dependent on organic search results that a re-balancing of google's algorithms could squash them. What happened to IPOs for profitable companies, anyway? Even Facebook (which IS profitable) is going to wait to build their revenue and profit further before their IPO.