Oversee.net To Acquire SnapNames
Domain firm Oversee.net buys expired domain leader SnapNames.
Just a few short years ago SnapNames was selling expired domains for $60 each. As it pushed for the domain wait listing service it would have been a political problem to use competitors’ auction models. It has since matched their model, auctioning off domains to the highest bidder while also forging exclusive arrangements with registrars to auction their domains. SnapNames has grown rapidly as a result and domain firm Oversee.net just disclosed that it is acquiring the firm.
Oversee.net is best known as the parent firm of domain parking firm DomainSponsor. It also runs mortgage lead generation site Low.com, advertising service Revenue.net, and owns a sizable portfolio of domain names.
Judging from SnapNames’ F.A.Q.s regarding the buyout, the main concern for SnapNames’ clients is a conflict of interest. Oversee.net bids on domains at SnapNames. Now that they own the firm will they have an unfair advantage?
At a simple level, yes. Oversee.net can afford to bid more on domains since it will now earn its subsidiary’s standard commission on sales. That is unavoidable and can’t be debated. But the greater concern is twofold:
1. SnapNames could divert some domains from auctions directly into Oversee’s portfolio rather than offering them to the public. Hopefully the registrars’ contracts with SnapNames prevent this.
2. Oversee.net could obtain additional intelligence regarding domains prior to the auctions (e.g. traffic levels). This would give the firm an unfair advantage.
Oversee.net needs to build a deep firewall between its buyout operations and SnapNames to prevent any appearance of a conflict.
