Domain Sale of Unusually Large Size

[jberryhill]

http://www.marchex.com/press.html#news14

Marchex Announces Updated Financial Guidance and Planned Financing Event In Connection with Asset Acquisition

SEATTLE, WA - November 23, 2004 - Marchex, Inc. (NASDAQ: MCHX), a provider of technology-based merchant services that facilitate and drive growth in online transactions, today announced that it has signed a definitive agreement to acquire certain assets of Name Development Ltd., a corporation operating in the direct navigation market, for $164.2 million, including $155.2 million in cash and $9 million in stock (valued based on the 10-day trailing average measured from closing date). The transaction is expected to close during the first quarter of 2005. Details of a planned financing event to provide the cash consideration for the transaction will be announced separately within the next 30 days.

As part of this transaction, Marchex will be acquiring a large base of online user traffic, which Marchex estimates at more than 17 million unique visitors per month in October 2004. This traffic is generated from a portfolio of Web properties, or Internet domains, which are generally reflective of commercially-relevant search terms in many of the Internet's most popular vertical commerce categories, and may include geographically-targeted elements. The total number of Internet domains in the portfolio, including Marchex's existing Internet domains, is more than 100,000.

 

[namewaiter]

WOW!
100,000 domains - they should take the cash and spend a couple million on 10-50 great domains and start over!

 

[jberryhill]

You can get some interesting numbers out of this

Average cost of $1,550 per domain (not counting the stock).

Average rate of 170 unique per month per domain.

So that is $9.11 per unique per month.

Do I have that right?

Of course, that's based on "more than 100,000" domains....

 

[GeorgeK]

Nice exit strategy for the seller. arty: Nearly all cash (assuming Marchex comes up with the funds).

 

[Nexus]

(assuming Marchex comes up with the funds).

Heh, heh, heh.

~ Nexus

 

[GeorgeK]

It's 8 years income, roughly, so the market should be able to finance it. Otherwise, they have a 7 month option for the breakup fee of $1.5 million -- a very cheap price for an option on such volatile assets.

 

[chatcher]

...So that is $9.11 per unique per month...

I will sell my portfolio for half that. Any takers?

 

[Chaiki]

http://www.marchex.com/press.html#news14

 

[deepstar]

Interesting, obviously to leverage enhance ppc listings. In my opinion it's smart as buying a search engine with as much traffic those domains receive would likely cost more plus there is no guarantee that the traffic will remain with a search engine but with type in domain names the traffic will likely remain for some time to come.

 

[Anthony Ng]

Threads merged. Thanks.

 

[URLCollection]

Seems like a nice deal for all - Steve

 

[cogeek]

So that is $9.11 per unique per month.

hhehhe, that's lot of $$$

 

[David G]

http://www.marchex.com/press.html#news14
You can get some interesting numbers out of this

Average cost of $1,550 per domain (not counting the stock).

Average rate of 170 unique per month per domain.

So that is $9.11 per unique per month.

Do I have that right?

Of course, that's based on "more than 100,000" domains....

Not that good in math but looks to be right!

Great deal John, very well done by all parties. Both buyer and seller did very well and the portfolio was definately a good buy for buyer.

Hopefully you will be in a position to put up an announcement regarding a multi-million $ sale of my portfolio one day too. d :wink:

 

[jberryhill]

Great deal John

Not my deal. I just read the papers like everyone else.

 

[DaddyHalbucks]

Show me the money!

So, we have to wait until July 1 to see if it is for real?

 

[David G]

Not my deal. I just read the papers like everyone else.

My error as I thought you have represented Name Development & Yung Ye but perhaps I have it confused with Name Admin :huh: :huh:

 

[jberryhill]

I can't see where you'd get the impression I have ever represented Name Development Ltd.

I do patent, copyright and trademark related work. Spreadsheets and numbers make my head hurt.

 

[Deleted member 4749]

Yun has to come out so we can congratulate him for demonstrating his outstanding leadership of our field.

 

[draqon]

no, he's not coming out of hiding as long as the IRS is anywhere near. i think he fled to Canada.

 

[Anthony Ng]

I can't see where you'd get the impression I have ever represented Name Development Ltd.

Rumour has it that Name Development Ltd. is Yun Ye, a.k.a. Ultimate Search.