According to a report in tradingmarkets.com, Dark Blue Sea, part of our Domain parking Stock Index, entered into a 5 year agreement with GoDaddy.com to sell domain names from its own portfolio.

Dark Blue Sea will issue GoDaddy an option to acquire 6.5 million shares of Dark Blue Sea shares at an exercise price of $.65 AU, expiring on June 7, 2013.

To exercise the options, Godaddy.com has to sell 45,000 domains of Dark Blue Sea over the same time frame.

According to the press release of Dark Blue Sea, they expect revenue from the domains sold through GoDaddy, after commission to Godaddy, to be at least 32 Million Australian dollars.

If you do the math that would net Dark Blue Sea around $711 Australian Dollars per domain name.

The Austrian dollar is trading at $.92 of the American dollar.

So at today’s exchange rate, Dark Blue Sea would net out only $652.00 USD on average for the 45,000 domain names it will sell through GoDaddy’s network.

Dark Blue Sea is currently trading at $.61 on the Austrian stock exchange.

So GoDaddy gets the ability to buy 6.5 million shares, at basically today’s price for the next five years.

In addition, GoDaddy receives a commission per sale for each domain name sold.

The press release did not indicate what commission GoDaddy would receive for each sale.

In the six month period ending December 31, 2007, Dark Blue Sea revenues we reported as $15.53 Million.

So for Dark Blue Sea assuming the 32 Million AU dollars in sales takes place evenly over the 5 years, it will add about 30% in additional revenue to its bottom line, not taking into account the amount it will lose in parking revenue from the domain’s being sold.

According to Dark Blue Sea’s Site they own 400,000 domains in their own portfolio and therefore this agreement would seem to allow Dark Blue Sea to sell 10% of their domain portfolio for $32 Million Australian Dollars.

The question is how will the additional inventory of 9,000 domains a year, on the market for a retail price of somewhere on average of between $1k-2K USD (including GoDaddy commission), effect the overall domain resale market.