The rise of the shell rollups in digital media: Former MySpace.com chairman Richard Rosenblatt has formed a shell media comany called Demand Media, and raised $120 million for it. The company has bought a number of high-value domain names, and will use these sites to direct traffic to other sites through ads and other kinds of content. The big funding from Spectrum Equity Partners, Oak Investment Partners and Generation Partners, according to WSJ. As part of the plan, the LA-based company has bought Seattle-based eNom, what it claims is the world’s third-largest domain name reseller, with more than 6.4 million domains on its platform. Along with it, it has also bought eHow, an SF-based site about various how-to subjects.
Execs from Yahoo and IAC, among others, will be joining as part of the founding team, the company said.