NEW YORK (CNNMoney.com) -- Social networking startup Demand Media is preparing an initial public offering and has hired Goldman Sachs as an underwriter, according to a report published Friday.
Demand Media, a $1.5 billion company founded by former MySpace chairman Richard Rosenblatt, plans to file its initial public offering by August with Goldman Sachs (GS, Fortune 500) at the helm, the Financial Times reported.
Goldman Sachs has already served as one of the chief sources of funding for the company, raising $355 million since 2006 in conjunction with Oak Investment Partners, Spectrum Equity Investors and Generation Partners, according to the report.
Demand Media, one of the lead suppliers of video content to YouTube, and Goldman Sachs both declined to comment.
Sal Morreale, IPO expert for Cantor Fitzgerald, said it was too early to tell what kind of price the company would try to get for a public launch. But he said there will definitely be an enormous amount of interest on Wall Street, given the Internet presence of Demand Media and its potential backing by a financial heavyweight like Goldman.
"If this is the main supplier of content to YouTube, obviously it will attract some action, depending on pricing," he said. 
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