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You might recall that in April 2017, GoDaddy acquired a large portfolio of domain names from Elite Domains (including a bunch of 2-letter .com domains).
http://dotweekly.com/110k-domains-involved-godaddyelite-portfolio/
The value of that deal has never been disclosed. However, the latest financial statements might give some clues, although it's very confusing (I've sent emails to GoDaddy Investor Relations, for clarification)
https://www.sec.gov/Archives/edgar/data/1609711/000160971118000035/a12312017-10k.htm
it says on page 102:
It's not clear if those include the Elite domains portfolio. However, it seems unlikely, given that in November 2017 (after the Q3 2017 quarter), they had reported the values of the Donuts and Kevin Ham/Reinvent deals:
https://domainnamewire.com/2017/11/...ion-two-latest-domain-portfolio-acquisitions/
https://www.sec.gov/Archives/edgar/data/1609711/000160971117000249/gddy10q-20170930xq3.htm (page 26)
Given the value of the Elite Domains portfolio (lots of 2-letter .com domains), it seems it should be valued at far more than $2 million ($52 million - $50 million), so it doesn't seem as if that's the 3rd purchase of intangible assets that they're talking about.
However, on page 100 of the recent filing (same filing used to reference page 102 above):
https://www.sec.gov/Archives/edgar/data/1609711/000160971118000035/a12312017-10k.htm
it says:
Could that be the Elite Domains deal? Its timing matches (April 2017). The valuation seems "reasonable" for a domain portfolio of that quality and size. However, it's unclear why it would be treated differently than the other domain portfolios (Donuts/Reinvent), and not aggregated in that section of the financial report.
Hopefully GoDaddy Investor Relations can provide some clarity to this, so we can figure out the deal terms.
http://dotweekly.com/110k-domains-involved-godaddyelite-portfolio/
The value of that deal has never been disclosed. However, the latest financial statements might give some clues, although it's very confusing (I've sent emails to GoDaddy Investor Relations, for clarification)
https://www.sec.gov/Archives/edgar/data/1609711/000160971118000035/a12312017-10k.htm
it says on page 102:
During 2017, we completed three purchases of intangible assets for $52.0 million in cash. The assets purchased consisted of $50.5 million in indefinite-lived domain portfolios and $1.5 million in customer-related intangible assets. The purchased customer-related intangible assets were valued at cost and are amortized over 36 months. Transaction costs were immaterial and were expensed as incurred.
It's not clear if those include the Elite domains portfolio. However, it seems unlikely, given that in November 2017 (after the Q3 2017 quarter), they had reported the values of the Donuts and Kevin Ham/Reinvent deals:
https://domainnamewire.com/2017/11/...ion-two-latest-domain-portfolio-acquisitions/
https://www.sec.gov/Archives/edgar/data/1609711/000160971117000249/gddy10q-20170930xq3.htm (page 26)
In October 2017, we completed two domain portfolio acquisitions for aggregate cash consideration of $50.0 million, including $4.2 million payable upon expiration of the contractual holdback periods.
Given the value of the Elite Domains portfolio (lots of 2-letter .com domains), it seems it should be valued at far more than $2 million ($52 million - $50 million), so it doesn't seem as if that's the 3rd purchase of intangible assets that they're talking about.
However, on page 100 of the recent filing (same filing used to reference page 102 above):
https://www.sec.gov/Archives/edgar/data/1609711/000160971118000035/a12312017-10k.htm
it says:
Other 2017 Acquisition
In April 2017, we completed an acquisition for consideration consisting of cash of $45.7 million, $9.0 million payable in future periods upon expiration of the contractual holdback period, $15.0 million of time-based milestone payments and additional contingent earn-out payments of up to $15.0 million subject to the achievement of certain revenue and integration milestones. We recognized a liability of $33.7 million representing the estimated aggregate acquisition-date fair value of the future payments. Pro forma financial information is not presented because this acquisition was not material to our results of operations.
The aggregate purchase price was allocated based upon our assessment of acquisition-date fair values with $63.9 million allocated to goodwill, none of which is tax deductible, $28.5 million to identified finite-lived intangible assets and $13.0 million of net liabilities assumed. Identified finite-lived intangible assets, which were valued using income-based approaches, consist of developed technology, customer relationships and trade names. The acquired finite-lived intangible assets have a total weighted-average amortization period of 5.5 years.
Could that be the Elite Domains deal? Its timing matches (April 2017). The valuation seems "reasonable" for a domain portfolio of that quality and size. However, it's unclear why it would be treated differently than the other domain portfolios (Donuts/Reinvent), and not aggregated in that section of the financial report.
Hopefully GoDaddy Investor Relations can provide some clarity to this, so we can figure out the deal terms.
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