Auction Fever: The Sale of Domain Names and Websitesby Katherine Winters
Recently, there's been much attention paid to the valuation of Internet companies and Internet assets. Investment analysts have basically admitted that their traditional measures of analyzing a company's worth simply aren't of much use in today's market, in which high-flying Internet companies with small revenues could easily buy out dozens of traditional companies with solid profits and years of market experience.
Recently, for example, it was reported that the domain name Year2000.com received a $10 million bid on eBay.com. The bid turned out to be a hoax, eBay officials have admitted. Nevertheless, both the reported bid and news of the hoax were highly-publicized, garnering the owners of Year2000.com thousands of dollars in free publicity.
In the wake of this media frenzy, the owner of SouthernNewMexico.com, a website launched three years ago, has decided to sell her website to the highest bidder on January 31, 2000. Carla DeMarco, the seller of SouthernNewMexico.com, is even offering a finder's fee of $10,000 to the first person who submits the name of the ultimate purchaser of SouthernNewMexico.com.
SouthernNewMexico.com is but the latest in a string of high-profile website and domain name sales. Had the $10 million sale of Year2000.com gone through, it would have broken the previous record for the sale of a domain name, Business.com, which sold for $7.5 million last November -- and attracted a blitz of media coverage for eCompanies, the buyers of Business.com.
In the midst of this buying and selling fever, resources are turning up on the Internet which are exclusively devoted to the buying and selling of websites and domain names. For example "Movable Business Opportunities" is an announcement list dedicated to providing a forum for posts of Internet-related businesses and assets for sales. Similarly, Webmergers.com is a website focused exclusively on the buying and selling of websites and Internet companies. And a plethora of websites exist which serve solely as brokers for buyers and sellers of domain names, such as GreatDomains.com, Afternic.com, and Domains.com.
When will this selling fever end? At present, at least, there seems to be no end in sight. Until the Internet bubble pops, or the overall market takes a heavy dip, we're bound to see ever loftier prices being paid for valuable Internet properties, as companies try to lay a claim to the Internet before ossification and oligopolization of the Internet industry sets in and competition becomes too expensive for all but the largest contenders.
For now, those Internet investors and companies that are on the cutting edge will continue to merge, acquire, and consolidate, and individual owners of websites & small Internet shops will continue to sell their properties to the consolidators while the market remains at its present high.
Article courtesy of MediaPeak.
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