Summary:

Freelance aggregator Demand Media (DM) has filed for an IPO, according to an SEC filing late Friday afternoon. The company lists a “maximum…

Richard Rosenblatt, CEO, Demand Media

Freelance aggregator Demand Media (DM) has filed for an IPO, according to an SEC filing late Friday afternoon. The company lists a “maximum offering price” of stock up to $125 million without saying how much of a stake is actually up for sale. The S-1 filing is also missing some of those pesky details like date, share price and number of shares. CEO Richard Rosenblatt declined comment when reached by paidContent.

While the details about the IPO itself were fairly slim, the company did offer a comprehensive look at how its business has been doing for the past year.

In 2009, DM brought in $198 million in revenues with $22 million in losses; this year, the company has earned $114 million in revenues and racked up $6 million in losses.

Goldman Sachs and Morgan Stanley are the lead bankers on the IPO. The rest of the underwriter group includes UBS, Allen & Co., Raine Securities, JMP Securities, Jefferies, the RBC Capital Markets, Pacific Crest Securities and Stifel Nicolaus Weisel.

DM faces several risks going forward, which it outlines in the filing. Besides its history of losses, it is heavily dependent on Google (NSDQ: GOOG). For example, so far this year 26 percent of its total revenues were derived from Google, up from 18 percent for all of ’09. That could mean trouble if Google ends its agreement with DM or renews its contract on less favorable terms.

Secondly, most of DM’s content business is in eHow.com. The company faces a lot of competition, most directly from Yahoo’s Associated Content and from AOL (NYSE: AOL), which has been rapidly developing its own low-cost freelance content offerings.

DM also raised the possibility that its customers may not renew their domain name registrations, or that they may transfer its existing registrations to its competitors.

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