Demand Media CEO Richard Rosenblatt Answers Critics, Tells Us What The Biggest Internet IPO Since Google Felt Like (DMD)

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After a public offering set it around $1.4 billion in January, Demand Media already has a $2 billion market cap going into the middle of March.

The IPO – the biggest Internet offering since Google’s – and the subsequent stock performance having been amazing to watch because on its way to success – Demand has proven a large chorus of haters wrong.

Demand Media is a company that makes money two ways, as a domain registrar and as a publisher of evergreen content produced by an army of freelance writers.

Demand’s various doubters attack the company for three reasons.

• Some financial analyst question the company’s accounting principles. Demand categorizes the money it pays its writers as a capital cost and spreads it over five years. Some analysts think Demand should only spread the cost over one year, and that doing otherwise artificially inflates the company’s net income

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