No Way Is Demand Media Really Worth More Than The New York Times

New York Times and Demand Media logos superimposed on two skyscrapers

When Demand Media floated earlier this week it started out at $17 a share, rocketed on first day trading to a high of $24, and even after falling back to trade around $22 last night its market cap of $1.8bn still makes it worth more than the New York Times.

It’s that “worth more than the New York Times” bit that evidently set journalists’ teeth on edge – if the US paper of record is worth less than a five-year-old content farm, what hope for journalism?

The good news for journalism is that there is no rational basis for believing that Demand Media (NYSE: DMD) is worth more than the New York Times…

» Read the rest of this post on Seamus McCauley’s Virtual Economics blog…

This article originally appeared in Virtual Economics.

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