Report: Demand Media Gearing Up for IPO

Demand Media, the oft-maligned Web content producer whose bread and butter is distributing low-cost information that captures tons of search traffic, has hired Goldman Sachs to look into an initial public offering of the company’s stock, reports The Financial Times

Citing “people familiar with the plans,” the FT‘s Kenneth Li says the company could come public as early as August:

Details have yet to be finalised, but the discussions involve pricing shares around November in an offering valuing the company at about $1.5bn.

The FT also reports that the company is set to bring in around $250 million a year in revenue.

Demand Media was founded in 2006 by Richard Rosenblatt, former chairman of Myspace parent Intermix Media. Prior to Demand, Rosenblatt was probably best known for making a killing selling the social-networking platform to News Corp. for more than half a billion dollars.

To date, Demand has raised more than $300 million in venture funding. The company also recently inked a deal with USA Today to provide content for the newspaper’s online travel section.

(h/t paidContent)