Congratulations to Demand Media, Austin
By all accounts the IPO today exceeded expectations – both in initial pricing and in how it finished the day (up 33%). This is great news for the Livestrong foundation (previously known as the Lance Armstrong Foundation), and great news for Austin, rewarding some hard-working software engineers and friends of ours here in Austin. Hopefully the business and stock will do well for employees and investors – it will certainly help the local economy. And who knows what additional startups might sprout from their success. From the Austin-American Statesman this morning:Demand Media (NASDAQ:DMD) isn’t based in Austin, but a few years ago it bought an Austin-based company, Pluck, and has maintained (and grown) its presence in Austin ever since.
The Santa Monica, Calif.-based company, run by former MySpace Inc. Chairman Richard Rosenblatt, raised $151 million, 34.5 percent more than it had expected, with shares going to institutional buyers at $17 each — $1 more than the expected high price.