KAPOW: Google Blows A Hole In Demand Media A Week Before Its IPO

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Photo: Associated Press

Google just dealt Demand Media’s IPO prospects a nasty blow.In a post to the Official Google Blog, the company said that users are complaining about “content farms,” and that “we hear the feedback from the web loud and clear.”

The company says “people are asking for even stronger action on content farms and sites that consist primarily of spammy or low-quality content,” and that “we can and should do better.”

Notably, Google does not actually promise it will take any action against companies like Demand Media.

But what Google does is almost worse: vaguely suggest that it might someday do something to smash Demand Media’s business.

Google just introduced lots of fear and uncertainty into the minds of any potential Demand investors.

That can’t be encouraging for Demand Media CEO Richard Rosenblatt, who has to be hoping investors enter next week enthusiastic and chipper about his company’s prospects.

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