Now that Demand Media is public, has liquid stock, and a little cash to spend, it plans to start looking at premium content sites for possible acquisition, a source with knowledge of the company’s plans tells us.
We don’t know any specific targets, but given what do know, we’d speculate that properties like Sugar Inc, The Huffington Post, Mediaite, and Mashable are the kind of thing Demand would like to buy.
Alternatively, we wouldn’t be surprised to see Demand make a run at a network property like Federated Media.
You could see this post-IPO pivot coming. Demand Media CEO Richard Rosenblatt did not shell out big equity to poach Joanne Bradford from her job as the boss of all ad sales at Yahoo to have her selling ads against McContent all day. She’s at Demand because she has great relationships with big fancy brand advertisers – advertisers that like to put their brands against premium content.
The other reason Demand would go after premium content is to help the company’s branding. For a company that just raised $151 million to set a $1.5 billion market cap, Demand has a few smudges on it thanks to the low quality of its content and it’s peculiar accounting methods. Even a relatively small-sized premium property could quickly become the company’s overall brand.
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