Off another $17.9 million from BuyDomains deal — Endurance writes

It’s the second big impairment charge from the buyout.

Endurance International Group (NASDAQ: EIGI) has taken another big impairment charge related to its 2014 buyout of BuyDomains for $45 million. In its latest quarterly filing, the firm stated:

During the three and six months ended June 30, 2019, the Firm recognized an impairment charge of $17.9 million relating primarily to premium domain name intangible assets purchased in 2014, which was recorded in cost of revenue in the consolidated statement of operations and comprehensive loss. The impairment resulted from recent market conditions that have adversely impacted cash flows from these assets, and these market conditions are expected to continue. The Firm valued its premium domain name assets based on discounted projected cash flows from these assets using a discount rate of 11.6%, which resulted in an impairment of $16.2 million. The balance of the impairment charge was primarily related to developed technology intangible assets associated with the premium domain business which were valued using a relief from royalty approach.

This isn’t the first big impairment charge for the buyout. In 2017, it took at $13.8 million impairment charge.

Endurance CEO Jeffrey Fox mentioned the prior week that the premium domain business is trending weaker for the firm.