Demand Media Rallies After Private Equity Bid
A report at allthingsd.com has sent shares of Demand Media (NYSE: DMD) soaring on Monday. According to the website, the company had previously discussed a $1.2 billion buyout deal with private equity firm Thomas H. Lee Partners. The potential acquisition, however, has reportedly fell apart.
Nevertheless, due to the large premium that THL Partners was apparently willing to pay, investors and traders are taking another look at the stock. Heading into the close, DMD shares had surged 18% to $8.58. Volume has been explosive with more than 2.5 million DMD shares trading hands compared to a 3-month daily average of just under 305,000.
AllthingsD refused to identify their sources from the report and said that the deal dissolved over complications regarding financing and executive retention.
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