News & Updates - Tuesday, May 2, 2006
Demand Media Buys Domain Squatter eNom and Wiki's eHow
Former MySpace Chairman Richard Rosenblatt has embarked on an ambitious and stealthy play to milk dollars from domains. Demand Media is backed by $120M in funding from Wall Street investors and VC firms. The company's first move was to buy eNom, one of the largest domain name companies.
eNom is the third-largest domain registrar with more than 6.4M names under management. eNom is also the world's fifth-largest web hosting provider as measured by active sites.
Based in Bellevue, WA, eNom was founded by Paul Stahura, who is now CEO of Demand Media.
Explained Rosenblatt: "There are interesting components of the domain industry that when properly put together can provide a very compelling platform for the next generation of media companies. Direct navigation traffic, combined with specific proprietary content and innovative marketing will unlock an entirely new realm of Internet media. We look forward to working closely with the domain industry as we build Demand Media into a global media enterprise."
Meanwhile, Demand Media also purchased eHow, a San Francisco-based Wiki site. eHow gets a lot of traffic and has a massive amount of broadly applicable content that Demand Media can place on the thousands of Web sites owned by eNom.
Demand Media will compete with Houston-based REIT, which VC firm Maveron invest ed in. REIT has about 400K domains. Seattle-based Marchex got into the business in 2004 after its $164M acquisition of Name Development.
The a:c respects what Demand Media is doing because it is so damn practical. Demand Media is taking advantage of a boring phenomenon on the Internet - millions of visitors errantly visiting Web site domains which can be monetized and sticking content on those sites to increase page rank. Genius.
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