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The Web's original high-price domain name has been sold again -- for another lofty price.
Telephone-directory company R.H. Donnelley Corp. clinched a deal for Web-based marketing directory Business.com Inc. for between $340 million and $360 million, according to a person familiar with the transaction.
It's a start.
Now, at least, they own the name.
[edited by: Webwork at 5:41 pm (utc) on July 26, 2007]
R.H. Donnelley's Triple Play(TM) business-to-consumer integrated marketing solutions will also benefit from a significant infusion of leading-edge search and directory technology and interactive thought leadership from Business.com, particularly in the areas of performance based advertising technologies and corresponding ad network capabilities.
I would imagine it is much more than just a domain name buy
Though business leads are one of the juiciest, if not ultimately the juiciest, fruit in the PPC/lead orchard the issue with Business.com will always be whether the domain controlling entity offers as unique and compelling value as the domain-as-brand itself does.
In other words, can they outperform the domain?
"So, you got Business.com. Pretty good stuff there kid. Now what? What else ya got? Whatdaya got that the rest of those bums don't got?"
One sets oneself to an awfully high standard by marrying one's business operations to this domain.
At least they have two pretty good minds that I know of (hopefully) working on their new project. ;0)
[edited by: Webwork at 1:56 pm (utc) on July 27, 2007]
More importantly, they will need a unique selling point to draw the visitors in ...
Does anyone know how much the seller had invested in the business of business.com? How did they move this asset from $7m to $350m?
Business.com: Brand equity value ~ To be established
Let's just say that whomever put up the initial $7.5 million in cash and other value/interest managed to parlay that into a cash stream that likely paid the carrying costs and then they flipped a $7.5 million deal for $345 million.
That would be about 50xs their initial outlay/investment. (I don't have the details about further cash investments but let's assume they only managed to turn $7.5 million into $250 million to be conservative. Not a bad pay day.)
B2B's day "on the Web" is, according to a number of analysts, just emerging. Therefore it's not a bad time to take on Business.com.
I recall some blogger put the value of 1% of annual search volume at about $1 billion. I can imagine Business.com, if very well orchestrated and executed, could take on that proportion and more.
I imagine, in time, they could build the type of brand equity that would make the investment look sanguine. Give it a few years.