Demand Media, a leading online media company, launched its IPO today, and its shares rose immediately on the New York Stock Exchange under the DMD symbol, bringing in $151.3 million in gross proceeds. Shares were trading at $22.94 about two-and-a-half hours into trading, after touching a high of $25. The company stated that the proceeds will be used for content investments, working capital and international expansion. This episode is considered to be the highest market capitalization for an Internet company since Google’s IPO in 2004 when the price of a Google share went up to $85.

Demand Media gets content from freelance writers paying them modestly, about $15 per article and afterwards sells ads around the content. Most content producers do face time proof when it comes to the lifecycle of the content, but this is most likely in cases of print and digital media, both being able to produce residuals over the entire lifetime of its copyright.  Most content publishers make up both costs and expected revenue up front, whereas Demand intends to amortize costs over five years.

As previously covered, Demand Media has drawn SEC’s attention regarding accounting issues and listing its expenses for content. The Securities and Exchange Commission required Demand Media to amend their IPO application to include information about their accounting procedures. “To be allowed to expense over five years, Demand said, the company has to use a sophisticated algorithmic platform–which other content creators do not have–to provide proof of ‘probable economic benefits’ from that content over that time.”