Thursday, December 30, 2010

No Demand For Demand Media?

Today's article on the CNNMoney site explains that, while Demand Media's CEO Richard Rosenblatt believes his company has the ability to raise much needed capital through an IPO, Wall Street and the Securities Exchange Commission are not quite so sure. Both its business model and accounting practices are being called into question; chief among them, that Demand's Adsense ratings are completely dependent on the way they have gamed Google's algorithm (and that said algorithms can be altered by Google at any time to stop the high ratings), and the questionable quality of content Demand provides through its cheaply compensated content providers.

On Wall Street, at the very least, it appears there is no demand for Demand Media.
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