Monday, April 30, 2012
Report: Demand Media Passed Up $1.2B Go Private Deal
Los Angeles-based Demand Media just passed up a deal to go private, according to a report over the weekend from the WSJ's AllThingsD, which says that the firm--headed by Richard Rosenblatt--ultimately decided to pass on the offer from private equity shop Thomas H. Lee Partners. Apparently, T.H. Lee offered up to $1.2 billion to take Demand Media private, but the offer was ultimately declined due to financing and ability to retain executives after an acquisition, according to the report. Demand Media's market cap has dropped significantly since its IPO in February of last year, particularly after an algorithm change at Google caused a steep dropoff in Demand Media's traffic.