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.
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.”