Demand Media Plans On Investing $5 Million In New gTLD’s

As part of Demand MediaÂ’s earning report, it appears Demand Media has plans for applying for a number of new gTLDÂ’s.

In the section of the earnings report “looking forward” to 2012 to serve as guidance to investors of the company’s Demand states:

“”Excluding up to $5 million of 2012 operating expenses, which the Company expects to incur related to its generic Top Level Domain (“gTLD”) initiative”

Demand Media did not address its $5 Million dollars anticipated investment in the new gTLDÂ’s its conference call which followed the earnings report.

At roughly $200K per application it could mean the Demand is planning on applying for some 25 new gTLD strings.

Interestingly at least two former execs of Demand that received restricted shares in Demand and may well still be shareholders, formed another company,  Donuts, which according to reports is planning on applying for 10 new gTLD extensions.

ItÂ’s possible that Demand and Donuts may wind up applying for one or more of the same gTLD extension which could lead to a bidding war in an auction between Demand and shareholders of Demand.

Its also should be noted that the stock market loved Demand Earnings report sending the stock up 30% in trading on Friday.

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CTO @ Futurniture. General interest in Internet, communication and the concept of open source.