Marchex paid $10 million for Spanish domain portfolio

[NameRegistration]

Marchex has paid $10 million for Spanish domain portfolio. The portfolio has been sold by Chris Chena (Chena Ventures) and Matias de Tezanos (ClickDiario.com Networksold to Livedoor Co., Ltd) and includes names such as cocina.com (English translation is "Kitchen" or "Cook"), fotos.com (Photos), futbol.com (Soccer), eportes.com (Sports), mascotas.com (Pets), mujer.com (Woman), peliculas.com (Movies), salud.com (Health), and tarjetas.com (Greeting Cards).

Here is the full article:

SEATTLE & BUENOS AIRES, Argentina--(BUSINESS WIRE)--May 21, 2007
Marchex, Inc. (NASDAQ:MCHX) (NASDAQ:MCHXP) and Fox's Latin
American Channels division, a wholly owned subsidiary of News
Corporation, today announced a partnership to jointly develop a set of
Spanish-language Web sites owned by Marchex, including cocina.com
(English translation is "Kitchen" or "Cook"), fotos.com (Photos),
futbol.com (Soccer), deportes.com (Sports), mascotas.com (Pets),
mujer.com (Woman), peliculas.com (Movies), salud.com (Health), and
tarjetas.com (Greeting Cards). Through the partnership, Fox will
provide localized content and community features to the Web sites
including: videos, forums, blogs, personal home pages, and photo
albums.

Marchex recently acquired more than 100 Spanish-language Web sites
from two separate parties. The acquired Web sites collectively
generated more than 1 million unique monthly visitors for the month of
April 2007. Unique visitor statistics are based on internal traffic
logs, which calculate unique IP (Internet protocol) addresses on an
unduplicated basis during a given month. Under the terms of the
transaction agreements, which are effective immediately, Marchex paid
a total of $10 million in cash for all of the Web sites. Additional
examples of the Web sites, which will initially be monetized with
graphical and pay-per-click text advertisements, are listed below.

"Partnering with Fox, one of the global leaders in creating
digital content and online communities, helps us extend our
international reach to one of the fastest growing demographics of
Internet users," said Peter Christothoulou, Marchex Chief Strategy
Officer. "It is a key step in our ongoing strategy of acquiring Web
sites and developing them into high quality destinations which, over
time, will continue to build our base of global and local traffic."

"Marchex has had the vision to acquire and develop local Web sites
at scale to create an increasingly valuable and growing online
network," said Hernan Lopez, President, Fox Latin American Channels.
"We are very pleased to work with Marchex in extending their
international strategy, and believe that the unique combination of
Marchex's premium Spanish-language Web sites and Fox's
community-focused assets will create powerful consumer destinations."

By partnering with Fox, which operates over 50 Spanish-language
Web sites, Marchex is further extending its business internationally
and targeting one of the fastest growing global Internet demographics:
Spanish-speaking Internet users from Spain, South America, Central
America, Mexico, and the United States. According to Internet World
Stats, there are more than 100 million Spanish-speaking Internet users
worldwide, an increase of more than 260% since 2000, outpacing the
rest of the world's usage growth by more than 25% over the same
period.

Today's developments complement Marchex's broader Web site
development strategy, which involves acquiring commercially relevant
Web sites that have generic and descriptive characteristics, then
developing the Web sites into robust online consumer destinations that
provide an excellent user experience and highly targeted advertising
opportunities. In June, Marchex plans to re-launch more than 100,000
of its local Web sites, utilizing its Open List content aggregation
and publishing engine to populate selected Marchex Network Web sites
with relevant content, including product or service descriptions,
ratings, expert third-party reviews, user-generated reviews, articles,
awards, maps and more.

Examples of Marchex's Spanish-Language Web Sites:

Below is a sample list of Marchex's Spanish language Web sites,
including the newly acquired Web sites as well as Web sites Marchex
already owned.

-0-
*T
Newly Acquired Existing
Web Sites Examples Web Sites Examples
---------------------------------- -----------------------------------

English English
Spanish Web Site Translation Spanish Web Site Translation
---------------------------------- -----------------------------------
Animacion.com Animation Abastecedores.com Suppliers
Bromas.com Jokes Actriz.com Actress
Cartas.com Cards or Letters Almohadas.com Pillows
Cocina.com Kitchen or Cook Analogia.com Analogy
Computadoras.com Computers Aprendiz.com Apprentice
Dinosaurio.com Dinosaur Astrologica.com Astrological
Deportes.com Sports Aventuras.com Adventures or
Flings
Dietas.com Diets Burrito.com Burrito
Estudios.com Studies Charlar.com To Chat
Financiero.com Financial Elturismo.com Tourism
Fotos.com Photos Escuchar.com Listen
Futbol.com Soccer Espejos.com Mirrors
Mascotas.com Pets Familias.com Families
Mensajes.com Messages Importadores.com Importers
Mujer.com Woman Impresor.com Printer
Nutricion.com Nutrition Instructores.com Instructors
Peliculas.com Movies Laceramica.com Ceramics
Publicidad.com Advertising or Leyendo.com Reading
Publicity
Salud.com Health Musico.com Musician
Tarjetas.com Greeting Cards Nombres.com Names
Universidad.com College or Salsa.com Sauce or Salsa
University
Ventas.com Sales Subasta.com Auction
Viajando.com Traveling Sucesos.com Events
*T

Marchex Updated Financial Guidance:

As a result of these acquisitions, Marchex is updating its 2007
financial guidance for fiscal year 2007 (Year ending December 31,
2007) as follows:

-- Revenue: Marchex does not anticipate meaningful revenue
contribution from the acquired Web sites for the remainder of
2007. Currently, Marchex fees are generated under the
partnership on a net revenue share basis once content feed,
administrative support and other costs have been recovered. As
such, Marchex is reiterating its anticipated 2007 revenue
range of $144 million to $150 million.

-- Adjusted operating income before amortization. Marchex
anticipates the Web Sites will be amortized over periods
ranging from four to seven years. Therefore, based on
approximately $1 million in incremental Web Site amortization
during 2007, a non-cash charge, and product investment
initiatives to further develop its Spanish-language Web sites
to increase their traffic and monetization levels, Marchex is
updating guidance to reflect that it anticipates 2007 adjusted
operating income before amortization in the range of $34
million to $38 million. However, Marchex does not anticipate
any significant impact on its adjusted EBITDA for 2007 based
on the transactions. For adjusted EBITDA, Marchex expects to
add back approximately $7 million in additional depreciation
and amortization to its range of $34 million to $38 million of
adjusted operating income before amortization, compared with
$6 million prior to the transactions.

About Fox Latin America Channels

Fox Latin American Channels operates channels, production, mobile
and online businesses in Latin America under the following brands:
Fox, FX, Fox Life, Fox Sports, Fox News, National Geographic Channel,
Universal Channel, SCI FI, Utilisima, SPEED Channel, Baby TV Channel,
MyFox, .Fox, and Fox Toma 1. Additionally its sales force -Fox
One-Stop Media- represents owned and third-party channels in several
markets. Fox Latin America Channels is wholly owned by The News
Corporation Limited (NYSE:NWS) (NYSE:NWS.A).

About Marchex, Inc.

Marchex (www.marchex.com) is a technology driven search and media
company focused on vertical and local online traffic. Specifically,
the company is focused on search marketing, local search, and direct
navigation. Marchex's platform of integrated performance-based
advertising and search marketing services enables merchants to
efficiently market and sell their products and services across
multiple online distribution channels, including search engines,
product shopping engines, directories and selected Web sites.

Safe Harbor Statement

This press release contains forward-looking statements that
involve substantial risks and uncertainties. All statements, other
than statements of historical facts, included in this press release
regarding our strategy, future operations, future financial position,
future revenues, certain statements and expectations regarding these
acquisitions, projected costs, prospects, plans and objectives of
management are forward-looking statements. We may not actually achieve
the plans, intentions or expectations disclosed in our forward-
looking statements and you should not place undue reliance on our
forward- looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
the forward-looking statements we make. There are a number of
important factors that could cause Marchex's actual results to differ
materially from those indicated by such forward-looking statements
which are described in the "Risk Factors" section of our most recent
periodic report and registration statement filed with the SEC. We
disclaim any intention or obligation to update any forward-looking
statements.

 

[Ed30]

Looks like Marchex got a good deal.

 

[OnSpec]

Well done Chris and company.

 

[GAMEFINEST]

sounds like a good deal

 

[ColdGin]

What a nice portfolio...OMG

 

[PRED]

awesome portfolio

 

[hugegrowth]

Looking at the names, I think Marchex got the WAY better end of this deal. Especially when you look at the forecast for Spanish demographics over the coming years. This may give a boost to the Spanish domain market too.

 

[PRED]

Looking at the names, I think Marchex got the WAY better end of this deal. Especially when you look at the forecast for Spanish demographics over the coming years. This may give a boost to the Spanish domain market too.

agreed :yes:

 

[droplister]

Sounds like too little to me, I cant even imagine the traffic on fotos peliculas deportes and futbol, but i suppose since it averages at about $500,000 a name it sure is nice.

 

[hugegrowth]

Yeah, it's nothing against the seller, Chris Chena, I remember reading about him at dnjounal and he seems like a nice guy and has done better than most with domains and internet. But it still seems like a low price for super high quality Spanish names. On the other hand 10 Mil will set anyone up for life, and he's probably using it to develop other higher priority projects for himself.

 

[Domainate.com]

I'm surprised Chena spent all the time and effort to build the portfolio of names that he has, only to sell a bunch of really nice ones off. I thought he was going to do something grand with them...oh well. :/

 

[fischermx]

I don't know if I feel shame or cheated.
I thought different from Chris.

But the worst is I think he sold cheap.

 

[xtc]

Agreed, surprised that he would let it go at that price to Marchex.

 

[tonyfloyd]

true....yin ye got $165 million from Marchex...granted chris is still holding juegos.com and paraguay.com...his 2 babies....which i dont think he'll be selling...but it does seem he could of got at least $25 million for what he sold.....

 

[AlienGG]

true....yin ye got $165 million from Marchex...granted chris is still holding juegos.com and paraguay.com...his 2 babies....which i dont think he'll be selling...but it does seem he could of got at least $25 million for what he sold.....

Yun Ye.

 

[tonyfloyd]

sorry Yun....

 

[ibydesign]

I suspect Chris has other domains on which he wants to focus. :yes:
I know where he can get some more. LOL

 

[Jeffreyw]

futbol bundled with other good domains is just too cheap!

Even non spanish people would type in futbol in their search about football (soccer) related stuff!

 

[petrosc]

Its sad to see all these good names being gathered by the giants... in 10 years there will be hardly any generic left in the market. All of them will be in the hands of marchex, name administration, ireit etc

The worst part is that these names will never be developed ... I cannot imagine them developing hundreds of thousands of names.... so most of them will stay parked forever. This will hurt direct navigation and our entire industry bigtime in the long run

 

[companyone]

Its sad to see all these good names being gathered by the giants... in 10 years there will be hardly any generic left in the market. All of them will be in the hands of marchex, name administration, ireit etc

The worst part is that these names will never be developed ... I cannot imagine them developing hundreds of thousands of names.... so most of them will stay parked forever. This will hurt direct navigation and our entire industry bigtime in the long run

Sorry...I have a different view:

The new model for the next 10 years will be to have one main domain (mother ship) and as many keyword domains as you can own (little battle ships) to drive all the traffic to the "mother ship".

The "mother ship" will be very well devloped on the topic and all the "little battle ships"(keyword domains) will be information type landing pages devleloped on a smaller scale than the "mother ship" who's only job(s) will be to "win the traffic battle" and drive it ALL to the "mother ship". No ads or anything on these "little battle ships"...just links to the "mother ship".

I have had these views for well over a year...and it was nice to see this article to "kinda" support my views.
Don't buy the keyword ~ Buy the Domain

As for parking....IMHO 10 years from now it will barely be an industry...I think we will see a decline in "parking" of 60% - 90%.

Peace,
Dan