Sedo Paid $825,000 for RevenueDirect
Buyout was modest in monetary terms, but notable in its signal.
As stated by public firm financial notes, Sedo paid $825,000 for its buyout of RevenueDirect in February. The purchase price included the client base, RevenueDirect brand and all respective software.
The transaction price was not disclosed when the firm was purchased in February, leading to speculation regarding the value of the deal. Many considered it modest, and this is true from a dollar amount and perhaps the number of domains involved. But the deal was significant for a few reasons:
1. Sedo extended its relationship with Dotster, a registrar with over 1,000,000 domains under management.
2. It signifies future consolidation in the domain parking business, especially for smaller domain parking firms. (See Domain Name Industry Buyout Watch).
3. It improves Sedo’s reach inside the United States, whereas the firm is relatively stronger than its competitors outside the U.S.
Now that we know the sales price, we also have an idea of what comparable modest domain parking firms might sell for. In this case it’s impossible to determine how much of the $825,000 purchase price was related to Dotster’s own domains and their monetization stream, client domains and their revenue stream, the technology, and the enhanced relationship with Dotster.
