2. Would you have made the decision Rosenblatt made to take Dr. Koop into bankruptcy? I probably would have made the same decision. He had already laid off the workers and he could have launched if it hadn't been for the 9/11 incident. The company didn't have any access to capital and he didn't want to put the money in that the investors had. I wouldn't have trusted it ether. It was a smart move because no one sued the company because they knew he had made a good decision.
3. What is Demand Media's business model and competitive advantage? It is a leader in a new Internet-based model for the professional creation of high-quality, commercially valuable content at scale. It identifies, creates, distributes, and monetizes in-demand content through two distinct offerings: content and media, and domain registrar. There competitive advantages are 1. proprietary technologies and processes, 2. the freelance content creator community, 3. rapidly growing content library of more then 3 million articles and 200,000 videos, 4. more than 94 million unique visitors a month, 5. the second largest doman registrar, and 6. a highly scalable operating platform.
4. How does Demand Media justify doing a public offering when it is not yet profitable under GAAP rules? It could go become a joint company with Google. Or it could sell to Google.