Breaking: Demand Media Buys Emerging Cast, Enters Latin Content Farm Space
Very interesting news in the content farm space*. Demand Media has acquired Emerging Cast, a Buenos Aires, Argentina, based company led by Argentinean entrepreneurs Max Goldenberg and Damián Voltes.
With the acquisition Demand Media expands into the U.S. Hispanic and Latin American markets with Spanish-language content. In fact, it is launching the beta version of eHow Español in August 2011.
Demand Media, a public company, is a firm that produces content (texts, images, videos etc.) according to the requirements of users searching at search engines. It operates online brands such as eHow, and Cracked.
Emerging Cast, now Demand Media’s Latin American and U.S. Hispanic team, will continue to be led by Goldenberg and Voltes. The latter is a serial entrepreneur and venture capitalist, who founded Digital Ventures, a leading ad network that was later acquired by .Fox.
Revenues of Demand Media in Q2 2011 increased 32% to $79.5 million, compared with $60.4 million in Q210. Loss from operations of $(0.9) million compared with a loss from operations of $(1.0) million in Q210.
Note*: Content Farm is described (Wikipedia) as a company that employs large numbers of often freelance writers to generate large amounts of textual content which is specifically designed to satisfy algorithms for maximal retrieval by automated search engines. Their main goal is to generate advertising revenue through attracting reader page views as first exposed in the context of social spam.
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