• Reuters, Wednesday, January 12, 2011 11:12 PM

Demand Media Inc, which relies on search engine data and thousands of freelancers to churn out low-cost articles and video, set terms on Wednesday for a $112.5 million initial public offering. The company employs 13,000 freelancers who contribute to Web sites including its own eHow.com and Gannett Co's site for USA Today.

In August, Demand Media filed for an IPO of up to $125 million. On Wednesday, the company and stockholders filed to sell 7.5 million shares for $14 to $16 per share. Demand Media plans to sell 4.5 million shares while stockholders will sell an additional 3 million shares. Since its founding in 2006, Demand has stoked controversy and intrigue among news editors because of its use of software algorithms to predict what stories readers want and the lifetime advertising revenue value from search engines such as Google Inc.

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