SEX.COM

[KenP]

WOW!!! Honestly, I thought it'd sell for more.

sex.com sale

Sex.com Is Said to Be Sold for About $12 Million to Escom
From Reuters

SAN FRANCISCO — Sex.com, long coveted as potentially one of the most lucrative sites on the Web because of its catchy name, has been sold for about $12 million in cash and stock, a source familiar with the deal said Monday.

Boston-based Escom, a group of anonymous buyers, said in a statement that it had acquired the Web address from Gary Kremen, chief executive of Grant Media. Terms of the transaction were not disclosed.

Sex.com is seen as one of the most recognizable and therefore financially most promising Web domain names, but it does not currently have much content.

The new owners said in the statement that they planned to transform Sex.com into "the market-leading adult entertainment destination," which they said would include "adult dating opportunities," sex and relationship advice, erotica, video on demand and live chat.

XBiz.com, an adult entertainment trade site, first reported the sale of Sex.com last week and said Escom had agreed to pay $14 million.

But the source said the value of the deal was closer to $12 million and involved cash and stock, as well as requirements that the business meet certain performance targets.

The sale ranks as one of the most expensive Web domain name transfers and outpaces the $7.5 million paid for Business.com in 1999 at the peak of the dotcom boom.

Kremen — also the founder of Match.com, the matchmaking site now owned by IAC/InterActiveCorp — regained control of Sex.com after a legal battle dating to 1997 and subsequent struggles over management and ownership interests.

The site makes money selling banner ads pointing to pornography sites.

Kremen plans to continue as an advisor to the site.

[KenP]

WOW!!! Honestly, I thought it'd sell for more.

sex.com sale
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Sex.com Is Said to Be Sold for About $12 Million to Escom
From Reuters

SAN FRANCISCO — Sex.com, long coveted as potentially one of the most lucrative sites on the Web because of its catchy name, has been sold for about $12 million in cash and stock, a source familiar with the deal said Monday.

Boston-based Escom, a group of anonymous buyers, said in a statement that it had acquired the Web address from Gary Kremen, chief executive of Grant Media. Terms of the transaction were not disclosed.

Sex.com is seen as one of the most recognizable and therefore financially most promising Web domain names, but it does not currently have much content.

The new owners said in the statement that they planned to transform Sex.com into "the market-leading adult entertainment destination," which they said would include "adult dating opportunities," sex and relationship advice, erotica, video on demand and live chat.

XBiz.com, an adult entertainment trade site, first reported the sale of Sex.com last week and said Escom had agreed to pay $14 million.

But the source said the value of the deal was closer to $12 million and involved cash and stock, as well as requirements that the business meet certain performance targets.

The sale ranks as one of the most expensive Web domain name transfers and outpaces the $7.5 million paid for Business.com in 1999 at the peak of the dotcom boom.

Kremen — also the founder of Match.com, the matchmaking site now owned by IAC/InterActiveCorp — regained control of Sex.com after a legal battle dating to 1997 and subsequent struggles over management and ownership interests.

The site makes money selling banner ads pointing to pornography sites.

Kremen plans to continue as an advisor to the site. </div></BLOCKQUOTE>

[KenP]

Amazing! All these views and not ONE person willing to pay $13mil.

[rodster]

Well, now that you brought it up again ...

There's a lot here we don't know. Twelve million, yes, but what's the split between stock and cash? And how much risk is involved in the seller accepting the performance contingency?

All that aside, even if the deal is half paper and bloated with risk, on the surface it's still $2M per letter. Not a bad day for Mr. Kremen and I bet he wouldn't have done the deal if it was full of potential problems.

I agree, it's surprising the domain didn't go for more but who knows? Couple years from now Kremen may have quite a bit more.

And think of the fun he'll have until then.

[KenP]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by rodster:
Well, now that you brought it up again ...

There's a lot here we don't know. Twelve million, yes, but what's the split between stock and cash? And how much risk is involved in the seller accepting the performance contingency?

All that aside, even if the deal is half paper and bloated with risk, on the surface it's still $2M per letter. Not a bad day for Mr. Kremen and I bet he wouldn't have done the deal if it was full of potential problems.

I agree, it's surprising the domain didn't go for more but who knows? Couple years from now Kremen may have quite a bit more.

And think of the fun he'll have until then. </div></BLOCKQUOTE>Party party party.

[HummerNewbie]

$12m is a lot of money but if I recall correctly, the guy that stole it from Kremen made a lot more than that while he had control of it. Don't remember his name but thought I heard a while back that the guy got caught. Don't know, maybe he is still on the run.