Meet the Public

No Demand for Demand Media! Stock Tanks as Insiders Are Now Allowed to Sell Stock

dmd chart

Newly-public Demand Media, which Seeking Alpha calls “a terrible company” with a fair market price of about $0, had its IPO six months ago at a $1.4 billion valuation and carried a half-way decent share price that hit a high of around $24 but has been rockily falling toward the $13 range, where it was last month. But this week DMD’s insider lockout–the period of time during which company executives are prohibited from selling stock–just expired. And as of yesterday afternoon, the stock is tanking.

The easy conclusion is that insiders are dumping their stock because they know their company is a content farm that has little future as Google cracks down on sites that cater aggressively to search engine traffic with content that’s little more than search terms surrounded by related words. But it’s not because insiders are selling, the financial blogs say–Demand has had a collapse in demand. Just like traffic from Google, demand for Demand Media has simply been… shut off. Read More

Local Organic Content

Newly Minted TechStar Contently Raises $335 K. From Founder Collective

These are not the blogger you're looking for

It’s not a million dollar round on the first day of class, but Contently.com, which just joined the second class of TechStars NY, has raised a $335,000 debt round from Founder Collective.

The start-up has positioned itself as the anti-content farm, helping freelance journalists to manage their careers and big brands to produce editorial content that stands out, all while avoiding the SEO optimized schlock pumped out by Demand Media and others.

Speaking from personal experience, there isn’t much money in making freelance journalists your clients. But connecting professional writers with big brands looking for some high class advertorial could be a strong play. A corporation can afford to pay premium freelance rates, since they are chasing pageviews and online engagement, not a return on their dollars via advertising. Read More

Content Farming

The Dance Continues Between Google and Demand Media

panda demand chart

Matt Cutts, the man in charge of Google’s anti-webspam efforts, made waves when he publicly announced that the search giant would be tweaking its algorithm to try and reduce the number of high ranking results coming from “content farms”. The news was especially dramtic because it broke just as Demand Media finally made good on its billion Read More

Content Farming

Two Big Tech IPOs, Two Big Profit Fibs Revealed

hot air balloons

The last month has signaled the rebirth of the market for web IPOs. Facebook’s private offering set the tone, although the social networking company probably won’t go public for another year.

But investors eagerly snapped up shares of “content farm” king Demand Media Wednesday. Then on Thursday LinkedIn, the smaller, more professional Read More