Brett_Tabke - 1:31 pm on Jan 27, 2011 (gmt 0)
In other news, Demand Media IPO skyrockets up 33% on day of IPO.
Demand Mediaís stock jumped 33 percent on its first day of trading. As we reported yesterday, the company had already priced its shares at $17, above the $14 to $16 a share it had initially said it would sell its stock for. Investors ended up bidding up the companyís stock to $22.65 a share, giving the company a market value of $1.87 billion.
Man, old media is scared to death over Demand Media:
It will be tempting to overestimate the meaning of the stockís first-day movement (or in subsequent days, for that matter), so Iíll try hard not to. But we can at least agree that this the first big-name Web company to go public in a very, very long time.
So even if Demandís business didnít have anything to do with the media business, it would get plenty of scrutiny.
And, of course, Demand is in the media business, using a model that terrifies lots of people in the media business. It produces lots and lots of Google-ready content at very low prices, with the help of computer taskmasters and an army of freelancers.
Lucky for me! None of them write news stories about media companies going public. So Iíll make the most of the opportunity and check back in later today.