Demand Media Inc. (NYSE: DMD) rose 8.5% to $7.80 after the online content provider said its board had approved the repurchase of as much as $25 million of its shares. Volume for the stock was 424,000 shares, surpassing its all-day average of around 410,000.
A press release issued August 22 quoted CEO Richard Rosenblatt as saying, “this share repurchase program reflects confidence in our business and our commitment to maximize shareholder value.”
Under the program, Demand Media is authorized to repurchase up to $25 million of its outstanding shares from time to time on the open market or in negotiated transactions. The timing and amounts of any purchases will be based on share price, market conditions and other factors. The program does not require the Company to purchase any specific number of shares and may be suspended or discontinued at management’s discretion at any time without prior notice.
Headquartered in Santa Monica, California, Demand Media, Inc. is a content and social media company that serves consumers, advertisers, publishers and creative professionals with a diverse portfolio of properties, products and services.