Be Auctioned February 27 — Toys.com To
Minimum bids, asset purchase agreement, and 10% deposit required by February 25.
In the continuing saga of Toys.com, a fresh auction will be held February 27. The domain name was originally won at a bankruptcy auction earlier this month for $1.25M by Faculty Lounge Partners. Still, another party indicated it may be willing to pay more for the domain name.
Faculty Lounge, of which domain name lawyer Ari Goldberger is a partner, will be the stalking horse bidder for the auction. If Faculty Lounge does not win the domain in the fresh auction, it will be paid a break up fee of approximately 3% of the sale price in addition to its legal fees.
Fresh bidders will have to top $1.25M plus the stalking horse fees, so I estimate the minimum price would be regarding $1.35M. To participate in the February 27 auction bidders will need to submit an initial bid and 10% deposit by February 25. That means a typical deposit will be regarding $135,000. As of the time of writing, no formal bids have been received, but creating an asset purchase agreement generally requires substantial legal work.
Two sales from the original domain name auction have been completed: eToys.com and related domain names to Toys ‘R’ Us, and Birthdays.com and related domain names to DONE! Ventures.
