Monday, August 22, 2011
Demand Media Launches Share Repurchase Effort
Santa Monica-based Demand Media, the newly public online publisher run by Richard Rosenblatt, said this morning that it has launched a $25M, share repurchase program. The company said the move "reflects confidence in our business" and a commitment to "maximize shareholder value." Share repurchases have traditionally been used by more mature companies to signal their confidence in their companies, and have been used to buy back stock when a company believes it is undervalued. Demand Media was recently trading at around $7.19 per share, well below its IPO debut price of $17.00 per share.