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James Iles

Breaking: $90 Million Domain Sale Revealed

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By James Iles, Nov 6, 2015
  1. James Iles

    James Iles NamePros Writer PRO Business Account VIP Trusted Blogger

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    When I logged on to Twitter this morning, I was met with a tweet from domain investor George Kirikos claiming to have uncovered one of the most expensive domain transactions in history.

    Edit: Article updated for accuracy. The domain deal is for $90,000,000 payable until 2040. Not $65 million as was previously announced.

    After reaching his Twitter target of 10 Retweets, George Kirikos revealed details of the massive $90 million domain name sale. The information, which was revealed on George's Twitter page shows that LasVegas.com sold for a $90 million payment agreement in 2005, starting with an initial $12,000,000 fee.

    This sale dwarfs any other domain name sale in public record. The highest domain sale recorded has previously been Sex.com for $13,000,000. Some media outlets claim insurance.com for $35.6 million in July 2010 is the highest domain sale of all time, but this was not purely a domain name purchase.

    The SEC filing from Vegas.com LLC shows that they entered into an agreement to buy the domain name LasVegas.com. They initially paid a fee of $12,000,000 and will pay up to $90 million in total.

    Here's a quote from the SEC filing:

    If Vegas.com LLC wish, they can stop paying for the domain in June 2016 and lose the right to use the name, or they can pay $208,000 per month until 2040. So far they have paid around $30,000,000 for the domain name (includes the initial $12 million payment and subsequent monthly payments).

    Here is how the payments have been broken down:
    • An initial $12 million payment in May 2005
    • $83,000 per month for the next 36 months
    • $125,000 per month for the next 60 months
    • $208,000 per month for the next 36 months
    After June 2016 (as mentioned above), Vegas.com LLC can opt to stop using the domain or pay $208,000 per month until 2040, bringing the total sale to $90,000,000.

    LasVegas.com shows a fully operational website, displaying information regarding hotels, shows, and tours in Las Vegas. LasVegas.com has a global Alexa ranking of around 30,000 and shows up on the number 1 spot on Google for the search term Las Vegas.

    Incidentally, NamesCon will be in Las Vegas in 2016. With this new information, it seems very apt that domain investors will flock to Vegas!
     
    Last edited: Nov 6, 2015
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  4. James Iles

    About The Author — James Iles

    Writer for NamePros.com, domain name investor and broker. For all inquiries relating to stories and interviews, please email: [email protected]

    This is James Iles's 91st blog post on NamePros. View all blog posts

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  5. Comments (53)

  6. Omar Negron

    Omar Negron Supportive Member NamePros Supporter VIP

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    whoaaaaa.....
     
  7. Keith

    Keith Top Member VIP ★★★★★★★★★★

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    Vegas.com is better and the established site sold for half that price. Crazy sale of true.
     
  8. dordomai

    dordomai Active Member VIP

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    was lavegas.com a pure domain name purchase?
     
  9. GravityEleven

    GravityEleven Active Member VIP

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    Just following Kirikos's tweets right now as well.. if true then this domain sale would instantly take the top spot of all domains ever sold, topping even business sales such as Insurance.com and VacationRentals.com !!

    ps: just checked the SEC filings, amazing...
     
  10. mirul

    mirul NameSifu.com VIP ★★★★★★★★★★

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    Vegas bought LasVegas :'(
     
  11. Keith

    Keith Top Member VIP ★★★★★★★★★★

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    Thanks so in other words this reported 2005 sale is false.
     
  12. Mike Y

    Mike Y Established Member

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  13. Keith

    Keith Top Member VIP ★★★★★★★★★★

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  14. GravityEleven

    GravityEleven Active Member VIP

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    90 mio now.. simply mindblowing..

    would be interesting though to calculate how much has been paid so far, displaying the current sold price for the domain since it's an ongoing payment plan until 2040... meaning the domain will have been sold for 90 mio only if the buyer continues to pay up until 2040..

    if not, then lower...
     
  15. James Iles

    James Iles NamePros Writer PRO Business Account VIP Trusted Blogger

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    Yes, article updated.
     
  16. dordomai

    dordomai Active Member VIP

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    but vegas.com was not a pure domain sale.
     
  17. IRON-MAN

    IRON-MAN Established Member

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    LasVegas.com sold for $65million in 2005.
    Casino.com sold for $5.5 million 2003.

    I wonder what they are both worth in 2015?
     
  18. GravityEleven

    GravityEleven Active Member VIP

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    Quick mistake by George in that tweet.. in fact LasVegas.com was bought by Vegas.com LLC, original post in this thread still correct

    see also in SEC filing:

    "In June 2005, VEGAS.com, LLC entered into an agreement for the purchase of LasVegas.com."
     
  19. mirul

    mirul NameSifu.com VIP ★★★★★★★★★★

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  20. GravityEleven

    GravityEleven Active Member VIP

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    Ok, calculated it now as well.. almost 29 mio will have been paid for LasVegas.com until end of this year

    the remaining amount to be paid until 2040 to get to 90 mio..
     
  21. James Iles

    James Iles NamePros Writer PRO Business Account VIP Trusted Blogger

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    To clarify: LasVegas.com is the domain name purchased. So far they have spent around $30,000,000 on the domain acquisition, with around $60,000,000 to pay until 2040 should they wish to continue past next year.
     
  22. dordomai

    dordomai Active Member VIP

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  23. GravityEleven

    GravityEleven Active Member VIP

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    Would be interesting to see how long they keep paying.. who knows how the future of domains looks like in 10 years from now... or how we will navigate websites etc..
     
  24. Michael

    Michael NameBio.com NameBio Staff PRO ICA Member VIP ★★★★★★★★★★

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    LasVegas.com had "Stephens Media Intellectual Property" in the footer copyright from the early 2000's and the site remained more or less unchanged until the current iteration went live around November 4th, 2012. Seven years is quite a long time to leave the existing site up for it to be a domain only deal. I would bet the site, which was live since the late 90's, was pulling in deep six figures (or even low seven figures) per year.
     
  25. dordomai

    dordomai Active Member VIP

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    they paid 4 million last year so it'quite an expensive domain ;) but not sure if you can say the paid $90 million for it. I would say it's less than that.
     
  26. James Iles

    James Iles NamePros Writer PRO Business Account VIP Trusted Blogger

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    @dordomai - it's a $90m agreement. They've paid around $30m so far.
     
  27. sam roy

    sam roy Active Member VIP

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    Unbelievable.
    Some guy here on NP has lasveg.as
     
  28. dordomai

    dordomai Active Member VIP

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    i wonder what orlando.com is worth?
     
  29. James Iles

    James Iles NamePros Writer PRO Business Account VIP Trusted Blogger

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    Article updated to show all the latest information.
     
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