There has been much happening in the domain business this year. Unfortunately, many of the larger deals go unreported.
It’s not the Toys.com auction that this post is about. Earlier this year I was involved in the Toys.com bankruptcy auction. While this was both exciting and frustrating, ANOTHER major auction was going on. It seems that a large company decided to divest its domain portfolio and wanted to do it rather quickly. I found this out about it purely by accident. Their board was meeting the next day to decide and looked like they would approve a low 7 figure offer, which was at a rate of 5 times cash flow. While the cash flow was nice, the names were nicer. I immediately sent an offer, which was higher than the current offer. Since the company was public and the difference was material, I knew that I they would have to consider my offer. See later in the week for part 2.