NameSilo

56.com written down by USD $7.2 million, implying it cost at least that amount!

Labeled as analysis in Domain Industry News, started by GeorgeK, Apr 26, 2020

Replies:
5
Views:
822

  1. GeorgeK

    GeorgeK Leap.com PRO VIP ★★★★★★★★★★

    Posts:
    339
    Likes Received:
    1,612
    I think I found a very high value transaction for the 56.com domain name, revealed in a strange way. According to p. F-55

    https://www.sec.gov/Archives/edgar/data/1734107/000119312520112755/d844508d20f.htm

    Sohu revealed that:

    This means that they paid exactly USD $7.2 million if they wrote down the value to zero. Or, if the domain name still retains some residual value in their accounting (it would likely still be worth 7-figures WHOLESALE, given 3-digit dot-com domains are worth at least USD $300K these days wholesale, and 2-digit dot-coms are much more valuable than 3-digit dot-coms), this would imply that they paid *more* than USD $7.2 million originally.

    In other words, to recognize a $7.2 million impairment loss, it had to have been on the books for more than that!

    It can't be currently charted by DNJournal due to the lack of precision, but might be worth additional research (going back through their older SEC filings at some point, or reaching out to their investor relations, etc.)
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. GeorgeK

    GeorgeK Leap.com PRO VIP ★★★★★★★★★★

    Posts:
    339
    Likes Received:
    1,612
    Actually, to be more precise, even if they wrote down the value to zero, it could still have originally cost more than $7.2 million if they had since depreciated some of that original purchase price.
     
  3. jideofor

    jideofor Top Contributor VIP ★★★★★★★★★★

    Posts:
    3,083
    Likes Received:
    3,766
    This is interesting
     
  4. GeorgeK

    GeorgeK Leap.com PRO VIP ★★★★★★★★★★

    Posts:
    339
    Likes Received:
    1,612
    After doing more research, it looks like (according to Wikipedia) Sohu paid a rumoured USD $25 million for the 56.com website (content plus domain name):

    https://en.wikipedia.org/wiki/56.com

    So, it wouldn't have been a pure domain name transaction at the time of purchase. But, clearly they placed a high value on the domain name itself, for it to be able to be written down by USD $7.2 million.
     
    Last edited: Apr 26, 2020
  5. QuestFuture

    QuestFuture Established Member

    Posts:
    122
    Likes Received:
    38
    Thanks for sharing.
     
  6. DigitalRoar

    DigitalRoar Established Member

    Posts:
    817
    Likes Received:
    708
    Oh China...
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:
NameWorth
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...