So now, we sit back and put our thinking caps on. We were told we were the highest offer . they are asking all parties to make a minimum bid of 100k higher than our last offer. We have a few days for discussion. I assume that we need to blow everyone else out of the game and when its time to present our offer we raise our bid $800,000 (note to all, the bids are now in the low to mid 7 figures. I assumed (really hoped) that coming in with the highest bid would close it down. Lesson to all – don’t assume.
Here’s the notification letter:
I am pleased to inform you that your bid of $Y,YYY,YYY for the domain names and trademarks owned by our wholly owned subsidiary, xxxxxxxxxxxx represents one of the three highest bids received as part of xxxxxxxxxxxx’s sale process.
On Monday, beginning at approximately 10:00 a.m., we will be conducting a round robin auction, consisting of individual phone calls to the three remaining participants seeking the highest bid. We will continue the calls until two of the three bidders drop out, leaving the buyer that we will move forward with toward closing.
At the conclusion of the bidding on Monday, we intend to have the winning bidder execute a letter of intent, and immediately wire funds representing 10% of the purchase price to xxxxxxxxxxxx. We intend to structure this transaction as an asset sale, and consideration shall be in cash payable at closing, anticipated to be no later than xxxxxxxx, xx, 2009. I will be distributing the form of the letter of intent and asset purchase agreement over the weekend.
Please note that the Buyer shall rely solely on the revenue data previously supplied as support for any bid, and closing of the transaction shall not be contingent upon the buyer performing any additional due diligence with respect to statistical data related to the domain names.
Thank you again for your participation in this sale process, and I look forward to speaking with you on Monday.
Stay tuned for the auction in part 4