Tuesday, October 3, 2006
Demand Media Buys InfoSearch Media's AnswerBag.com
Los Angeles-based Demand Media and Marina Del Rey-based InfoSearch Media said today that Demand Media has purchased the firm's AnswerBag.com web site. Infosearch Media's AnswerBag.com site provided a Yahoo Answers-style Q&A web site driven by user questions and answers. InfoSearch Media said that the terms of the deal call for Demand Media to purchase $2M in its ContentLogic products over the next two years, and will receive warrants to purchase 5 million shares of InfoSearch Media's common stock in exchange for $3M in cash and warrants for 125,000 shares of Demand Media Series C preferred stock. Demand Media is headed by former MySpace chairman Richard Rosenblatt.