Is Yahoo eyeing Demand Media?

Despite a hectic past two months fighting off a proxy battle with investor Carl Icahn, Yahoo is rumored to be sending out buyout feelers for social-networks company Demand Media.

Yahoo's Hilary Schneider, who was recently promoted to oversee the company's U.S. go-to market operations, traveled to Demand Media's Santa Monica, Calif., offices a couple weeks ago to gauge Demand's interest in a $1.5 billion to $2 billion buyout, TechCrunch reports, citing unnamed sources.

But Demand Media didn't bite, TechCrunch notes, adding that company founder Richard Rosenblatt is said to be seeking a price in the $3 billion range.

A post in All Things Digital casts a different perspective on that meeting.

In an interview with All Things Digital, the Demand Media founder said: "There is a lot of potential here, and I want to build a big company for the long-term."

All Things Digital also cites Yahoo sources as saying there has been "no offer floated" to acquire Demand Media.

But both reports note that a hook-up between the companies wouldn't be a bad idea.

Says TechCrunch:

It just so happens that what Demand Media is good at--generating lots of advertising impressions and creating niche social networks for media sites, may be a perfect fit for at least some of what ails Yahoo.

But should Yahoo want to make a play for the company and force a deal, Demand Media doesn't have the same pressures as Yahoo, which is in its own fix with Icahn. Demand Media isn't publicly traded, at least yet...

[natsuissa]

yahoo s strategy is strange. How are they gonna handle the deal with microsoft.

Nath
http://www.themostpowerfulcompany.com

[JCPayne]

Yahoo.... Why don't you buy the partial VERIZON spin-off telephone company called FairPoint Communications????? Then you can own your own share of customers...

http://en.wikipedia.org/wiki/FairPoint_Communications
http://www.fairpoint.com/about_us/