Minds + Machines Group Limited (AIM:MMX) announced overnight that it acquired the new gTLD .Fashion at a price that exceed almost all the money it received from losing the new gTLD applications for .cricket, .pizza, .restaurant, .coupon and .immo.
In essesence according to the company it gave up rights to 5 new gTLD strings for .Fashion and £250,000.
Shares of Mind + Machines sank today in trading over 7.5% down to 10.75P in trading today
Fred Krueger, Chairman of Minds + Machines, commented:
“We consider .fashion a major win and expect that existing fashion brands, aspiring designers, retailers, consumers and entrepreneurs will naturally gather around the .fashion domain. We look forward to continuing to use the private auction process selectively to secure those domains which we have targeted and which we believe can return the greatest value to the comapny”
Personally I like .Pizza the best of the strings, .Fashion second best and .Immo third. Cricket is a very popular sport and I have owned Cricketonline.com for a very long time which has done very well in terms of traffic and PPC revenue.
It was reported that the domain name restaurants.com was sold for at least $6,000,000 back in 2011.
Obviously its a long domain, but restaurants is a huge vertical and the only competition for the extension in the new gTLD world is .Rest, .Food and .Eat
Not sure I like this 5 for 1 trade.
And it appears neither do the shareholders.
Brands-and-Jingles says
We should wait and see first year sales. And then the renewals. Until then, it is all .fuzzy
GenericGene says
Wow ! It makes Fashion.com look platinum ~~
Andrew Allemann says
Honest question here, assuming share drop has to do with this announcement today. Is it because:
a. shareholders upset it only got 1 out of the 6 TLDs in this batch?
b. concerned that it paid so much for .fashion?
c. concerned that auctions are hitting high prices, suggesting they might not operate as many domains as planned?
d. all of the above?
Michael Berkens says
Andrew
I would say all three
A 1 for 5 trade isn’t great especially when arguable one of the 5 was one of the best of the bunch .pizza in terms of potential registrations, I think Pizza is a universal word and off hand there are a lot more potential registrants of .Pizza then .Fashion although I do like .Fashion
As a portfolio play you want as many as possible, when you give up 5% of your apps for 1 it doesn’t match up well with the portfolio play
All of that is just my person opinion