Thursday, October 21, 2010

Sex for Sale

Well, I figured if that headline didn't get your attention....

Anyway, back in 2006 the owner of Match.com, Gary Kremen, held the rights to the domain "Sex.com" and decided to sell those rights.  Some investors formed Escom, LLC ("S" com, too clever) to buy those rights for a cool $12 million.  Apparently the investors used all their creativity on the company name, because they then managed to go broke.  In the sex business!  Half the Internet is sex, and they can't monetize Sex.com.  Wow.  They defaulted for a not-so-cool $10 million, and creditors pushed them into Chapter 11 last year.

Now Escom is seeking court approval of the sale of the domain to some off-shore consortium by the name of Clover Holdings, Ltd. (Which means Escom is throwing in the towel and is opting for a "liquidation plan."  Man I love how flexible Chapter 11 can be.).  Clover is paying $13 million, a $1 million mark-up in a BK sale in spite of the teeny-tiny economic downturn we've had in the interim.  Maybe Internet pr0n is the last bull market standing.

Labels: , ,

2 Comments:

At November 5, 2010 at 6:20 PM, Blogger 0s0-Pa said...

That is somewhat surprising to own a domain name like that and not be able to monetize it. I guess there is a lot of competition out there and that mixed with inexperience and lack of creativity and be the downfall. Too bad for them.
-Jack @ Merger and Acquisition Lawyer

 
At January 9, 2011 at 11:36 PM, Blogger Anonymous said...

2 thoughts.
1. Sex.com and they couldn't get it up?
2. Porn is not a viable business, unless there is a niche backed by paying customers. Everything--well, a lot--is free now, so you need to entice peeps onto your paid site. And not so surprisingly for porn sites, the seduction is out of their grasp.

 

Post a Comment

<< Home