DemandMedia, the Company Behind eHow Files For an IPO

They say “Content is King” and truly so. DemandMedia is one of the largest content producers that provide supplemental income to thousands of freelance writers every month. The company that owns popular reference site “eHow” today filed for an IPO.

The California based content creator is represented by GoldmanSachs and Morgan Staneley in this effort to raise appropriate capital. There is no information yet on how much they expect to raise, but the filing discloses that DemandMeda had revenues of $198 Million in the first 6 months of 2010 mainly generated through advertising sales and domain registrations. The complete text of the filing can be viewed here.

Besides eHow, other properties owned by DemandMedia includes Cracked.com, LiveStrong.com, Trails.com, GolfLink and AnswerBag. Over the last few years, the importance of structured content, such as that offered by DemandMedia properties, has increased exponentially with the increase in number of web users. In addition to accumulating content regarding a specific topic at a single platform, these properties also portray as more authentic to users compared to thousands of put-together web pages by individuals.

The response to DemandMedia’s IPO would be a good indication of the Silicon Valley’s economic health in general and a good example for many tech companies that are ready to go public. It is also interesting to note here that another content company AssociatedContent was recently acquired by Yahoo! for a little over $100 Million. Similar companies, same time frame, different exit strategies, let see which one proves to be better.

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