Financial gray areas plague Demand Media IPO bid
Demand Media, the syndicated online content company that filed for an IPO in August, has modified its filing to the U.S. Securities and Exchange Commission amid reports that the initial public offering has been delayed because of regulators' questions about Demand's accounting practices.
The issue, it appears, is that Demand Media amortizes the expenses of paying its freelance writers, distributing the cost over five years. It's something that the company has attempted to explain further in new additions to its SEC filing.
"Capitalized media content is amortized on a straight-line basis over five years, representing the … Read more