Demand Media’s plans for an initial public offering are moving forward. The timing of the IPO, however, is being held up by looming questions about the company’s accounting practices, according to AllthingsD.com.
The big issue is whether Demand—which has a vast network of freelancers producing thousands of articles for the Web—is, or will be, profitable given its current costs and revenue projections. That’s not as simple a question as one might think.
Per AllthingsD.com, Demand is employing some atypical accounting practices when it comes to listing its expenses for content.
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