Social networking startup poised for IPO

by Aaron Smith, staff writer


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. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,677.90 216.58 1.32%
Nasdaq 4,452.79 69.95 1.60%
S&P 500 1,950.82 23.71 1.23%
Treasuries 2.28 0.05 2.06%
Data as of 6:41am ET
Company Price Change % Change
Apple Inc 104.83 1.84 1.79%
Bank of America Corp... 16.60 0.20 1.22%
AT&T Inc 33.66 -0.84 -2.43%
Microsoft Corp 45.02 0.64 1.44%
Facebook Inc 80.04 1.67 2.13%
Data as of Oct 23

Sections

Buffett's investment firm lost big on Coca-Cola and IBM this week, but that's about the extent of his losses this year. More

Regulators are about to reveal the results of an extensive health check of Europe's top 130 banks, indicating which may need a cash infusion. More

Using technology developed for the military and implemented in Iraq, schools have installed alarm systems that detect gunfire. More

Dressing up in crazy costumes, traveling the world, posing for photos -- and getting paid to do it. Here are journal entries from a day in the life of professional "cosplay" character, Linda Le. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.