Sedo.com just put out a press release announcing the completion of the sale the domain name Sex.com for $13 Million Dollars cash.
We pretty much knew that, but the press release did contain some real news.
The previous purchase of Sex.com in 2006, which was always rumored to be in the price range of $10 Million to $14 Million, but never had a definitive price, was confirmed by the press release to have actually been $11.5 million dollars.
So on paper it looks like the previous purchase was profitable.
Clearly the domain name sold more than it did before, which is huge news.
But
Due to the Sellers being in default to domain capital, the company that financed part of the purchase of the domain, including past due interest, attorney’s fees and costs, I think its a fair assumption the Sellers did not walk away with any cash out of the deal.
So its a paper gain of $1.5 million but probably a no cash situation for the previous owners of the domain.
Congrats to Jeff Gabriel who brokered the deal on behalf of Sedo.
Here is the press release:
Escom Sells Sex.com Through Sedo for Record $13 Million
Online domain specialist Sedo.com today announced the sale of the Sex.com domain name for a record $13 million. The sale was brokered by one of Sedo’s senior domain brokers, Jeffrey Gabriel, who conducted a three-month search for a buyer on behalf of Escom in accordance with an order issued by the United States Bankruptcy Court for the Central District of California.
“We are very pleased with the fact that the bankruptcy process provided a basis for the sale of the domain free and clear of all creditor liens, which has now yielded this record breaking price,” stated Del Anthony, CEO/President of Escom.”
“It is very rare when a domain name of this quality and value becomes available, and we are pleased that Sedo was involved with this historic event. To our knowledge, this sale represents the single largest recorded price paid for a domain name in the history of the Internet,” said Gabriel.
Escom acquired the domain in 2006 for a then record $11.5 million. Sedo’s recent $13 million sale of Sex.com now holds the record as the largest domain sale to date, which further demonstrates the continued demand for premium domains and the increasing value of Sex.com.”
I thought this was reported at the time as between $12million-$14million presumably because there was some type of performance payment that was part of it?
Snoopy
I do not believe that was the case.
In any even the previous purchase price was $11.5 million, so the domain sold more than before
In our March 2006 Cover Story on Gary Kremen, the original owner of Sex.com who sold the domain to Escom, Gary told me it was a cash/stock deal worth at least $12 million. The first paragraph of the story said:
“Just about everyone in the domain business dreams of one day selling a name for enough money to retire on. A few weeks ago it happened for 42-year-old Gary Kremen. He sold sex.com in a cash and stock deal worth at least $12 million to fulfill a burning desire to be rich that dated all the way back to his high school days in Skokie, Illinois.”
His equity probably evaporated as the site spiraled into bankruptcy. Based on what he said I would think the $11.5 million valuation is not a cash figure but one based on a cash/equity arrangement.
Ron
Thanks for the clarification and congrats on the story that Mr. Schilling put up on you yesterday.
BTW if anyone hasn’t read the tribute to Ron be sure to check it out:
http://domainnamesales.com/sevenmile/2010-11/greatness-in-our-everyday/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+7mile+%28Seven+Mile%29
Thanks Mike – and thanks for your comments in Frank’s article – they were very much appreciated.
very pricey sex 🙂
Sweet, does anyone know anything about the buyers plans for it ? Are they likely to park it for ppc or develop it into a proper site ?
What other domains do they own?
Sedo did a incredible job and the huge amount involved with the Sex.com sale is remarkable. Jeff from Sedo starts selling Sex.co this Monday. I wonder how these two great domains will compare in their value. I think it will sell higher then the 10% rule some people talk about.
Diego
Who talks about the 10% rule?
I assume you own sex.co, I have already stopped about 10 comments from appearing on the blog, trying to pump the sale but I’ll let this one go since you are raising the issue of the value of .co to .com’s
Slots.com sold for $5.5M Slots.co sold for $11,500
I don’t get 10% out of that one.
Buy your question your thinking that sex.co will sell for $1.3 Million
Not going to happen.