Thoughts

Andrew Miller

October 27, 2024

A Buyer’s Market Cap Influencing a Domain’s Price?

A few weeks ago, I posted that we at Hilco Digital Assets oversaw the sale of the Rocket*com domain name, but could not discuss the buyer or the price. This week the buyer came out, as did some unconfirmed speculation on the price. On Wed, Elliot Silver reported that the Rocket Companies acquired the domain, https://lnkd.in/eNxMuEgH, and yesterday, George Kirikos uncovered an SEC filing, speculating that the referenced domain name at the price of $14m net of fees, was Rocket, https://lnkd.in/ep6TubZm. I cannot confirm that but I do have some thoughts on a few of the comments on George’s post, implying the price of the transaction referenced was too cheap. I have now had the lead seat for several 8 figure domain transactions in the past 3 years, as well as others between $7.5m-$9.9m. There have not been too many 8 figure domain asset transactions historically (I have overseen 6) but I am confident the others who have would agree that just because a company has a massive market cap or cash balance sheet (for example, Google, Amazon, Facebook or L3Harris )does not mean they will pay or receive an “on demand” price for the asset. They did not get to that market cap that way, that is for sure. It is easy for someone who has probably never been at that size of a table to “monday morning QB” that the price was too low. I cannot tell you how many times a client of this size has drawn a line in the sand, and is willing to walk away. The key, as always, is having a clear zone of possible agreement (“ZOPA”) and a win-win outcome for both sides. People like to point out the $30m Voice*com deal, which was paid in crypto, done at a time of web 3 mania, and from what I can see, may not be working out so well. If both sides are happy with the outcome of a business transaction, that is what defines its success.

I Didn’t Mean To Make You Cry

There are few words and influences in the universe as important as MOM or one’s Mom. Hilco Digital Assets is so excited to be overseeing the sale of the Mom.com domain name asset. A powerful category defining domain name and brand. DM me if interested.

That Time Of Year!

It is clearly Q4, as Friday saw us oversee the sale and acquisition of three ultra-premium domain transactions. More on these next week.

You Have To Celebrate Your Wins

Speaking of the above deals, I had a great time in NYC this week. In 2021, after closing 1 of our 2 major deals (Home and Chat) together, I sent my close friend larry fischer a bottle of rare 20 year old Pappy Van Winkle. While we have gotten together a few times since, we had not had the chance to drink it together. This finally happened this week, along with 2 other great partner meetings and the best part, a dinner with our son. I love NYC this time of year!

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