I read something shocking today about the owner of Demand Studios. Most of us have heard that DS is the leader of internet content and that instantly produces visions of $$$. But, according to CNN Money’s article Unprofitalble Demand Media Files for IPO, they have never made a profit. In fact, here are the exact stats from the article:
“Demand Media lost $22 million last year, and in the first six months of this year, it posted a $6 million loss on sales of $114 million. As of June 30, the company had a remaining cash supply of $34 million. Venture capitalists have invested more than $350 million in Demand, which closed its last publicized funding round in 2008.”
Wow. Simply amazing.
So that begs the question, will Demand Media be around much longer if they are bleeding money like a stuck pig? I can’t fathom that they would unless something happens fast.
ETA: Here is another article on the subject: Demand Media’s IPO