Who He Is
Demand Media has been in the news lately. Though now the focus is on the CEO, Richard Rosenblatt, who recently was featured in an article by NYSE (New York Stock Exchange) Magazine. As far as the NYSE Magazine is concerned, the main interest is on the innovative style of Mr. Rosenblatt, for there is no mention of the substantial price drop that occurred right after DS went public.
Nothing But Roses
In fact, the article fails the mention the price drop and instead focuses on the main personality, innovative attitude and business sense of Mr. Rosenblatt. Richard Rosenblatt got involved early in the web and internet with the formation of iMall back in 1994. Later on, he posted his favorite recipe for making a great Marguerita on E-How(please note Rosenblatt use to own a bar) and today he still receives almost 200 hundred dollars a year in advertising revenue. Although small potatoes in today’s finance world, the short piece taught Richard an important lesson in advertising and how the internet can be used to generate advertising revenue – a reality that is very important to the survival of Demand Studios.
Throughout the article, the emphasis is placed on “raising the bar” and “a innovative attitude to producing information that site visitors need or wish to know. Coupled with the acquisition of numerous websites, including a partnership with actress-turned-fashion-guru Tyra Banks, Demand Studios now supplies information to a large amount to viewers, whose daily numbers reach the tens of millions. In turn this has attracted many influential investors. So far this has not panned out, but the company only started selling stock back in January.
The article also fails to mention Google’s recent changes in page rankings, an event that has challenged the staff of DS to keep up the rate of profits. Although disconcerting, the slight adjustments made by Google should not prevent long term growth of the company. Perhaps, the release of a substantial number of writers like myself, who came in early on in the development of the company, merely serves as a way of bringing in new blood and keeping the content fresh and interesting. Or it could signal a major move from small journeyman writers towards big-name personalities like the already mentioned Tyra Banks.
Nonetheless, the DS stock price has declined by 75 percent since it opened. Many investors are aware of this and have shied away from placing money with this company. However, these are the small guys that buy the public stock, not the big Kahunas who fund the operation. According to the tone of the article, the innovative attitude of its CEO should be expected to carry the company through whatever turmoil comes their way. Much of the written piece serves as a window into the world of Richard Rosenblatt, who incidentally was labeled one of Fortune magazine’s “50 Smartest People in Tech” in 2010.