Demand Media, Inc. (LFGR)

[ICEQUITY]

Demand Media ?$DMD "The Offering"

Common stock offered by us
 
4,500,000 shares
Common stock offered by the selling stockholders
 
4,400,000 shares
Common stock outstanding after this offering
 
81,964,617 shares, or 82,639,617 shares if the underwriters exercise their option to purchase additional shares in full.
Use of proceeds
 
We expect to receive net proceeds from this offering of approximately $66.5 million, based upon the initial public offering price of $17.00 per share, and after deducting underwriting discounts and estimated offering expenses payable by us. We will not receive any proceeds from the sale of shares in this offering by the selling stockholders, including upon the sale of shares if the underwriters exercise their option to purchase additional shares from certain of the selling stockholders in this offering. We intend to use the net proceeds from this offering for investments in content, international expansion, working capital, product development, sales and marketing activities, general and administrative matters and capital expenditures. We currently anticipate that our aggregate investments in content during the year ending December 31, 2011 will range from $50 million to $75 million. See "Use of Proceeds."
Directed share program
 
The underwriters have reserved for sale, at the initial public offering price, up to approximately 431,000 shares of our common stock being offered for sale to business associates, Demand Media customers and friends and family members of certain of our directors and officers. We will offer these shares to the extent permitted under applicable regulations in the United States and in various countries. The number of shares available for sale to the general public in this offering will be reduced to the extent these persons purchase reserved shares. Any reserved shares not purchased will be offered by the underwriters to the general public on the same terms as the other shares.

New York Stock Exchange symbol DMD

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