20% in 10 Years — Fly.com Appreciates
Sale of $1.8 million not that great of a return.
The big domain name news today is the sale of Fly.com for $1.8 million to Travelzoo (NASDAQ: TZOO). That’s a big number, especially in today’s economy. But it’s not a great return for the seller.
It was almost 10 years ago that the domain name reportedly changed hands for $1.5 million. So in regarding 10 years the domain name appreciated less than 2% per year. Of course, 10 years ago the dot.com bubble was at its peak, so the $1.5 million purchase price was probably paid at the top of the bubble. The value then declined ahead of coming back up. The owners of the domain name have been monetizing it, too. So the total return is greater than 20%.
The domain name was listed in September’s Great Domains auction at Sedo with a reserve over $2 million. The domain was transferred to Travelzoo on January 20, 2009.
Regardless, this is a fantastic sale to a public firm. News like this will get the mainstream media talking regarding the value of domain names, which can only help the industry.
