Reglikedomain industry desk

“only” $2M: Landmark Business.com sale

The actual value of the landmark business.com sale was only $2M, not $7.5M.

Until recently, Business.com was considered the highest domain name sale ever at a noted $7.5M. (There have since been higher domain sales, pushing business.com down the list.)

But it turns out the $7.5M sale of Business.com wasn’t that much following all. It wasn’t a cash deal, and was for $7.5M in illiquid stock. We knew it wasn’t worth the full $7.5M, but we had no idea how much it was actually worth…until now. How much did the stock end up being worth? Only $2M, it turns out.

This is as stated by Jake Winebaum, founder of eCompanies. eCompanies was an internet incubator that started Business.com. In a recent article in Newsweek, Winebaum points out that $7.5M in stock in an inflated firm isn’t $7.5M in cash. When the firm refinanced in 2004 it redeemed the stock for $2.0M.

Also on the wire

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