Uber solved their problem by using equity to buy Uber.com from UMG. UMG received a 2% stake in Uber in exchange for the domain. Uber would be worth around $17 billion four year later, but UMG would not partake in this success since at some point before this valuation, the company sold back its shares to Uber for $1 million.
UMG made a shrewd business decision when they decided to sell Uber.com for 2% of Uber. In fact, UMG was probably happy with the deal they struck overall considering how the original investment failed and that the acquisition costs of the original purchase of the domain were nominal. In a vacuum, there is good ROI on this deal at $1 million dollars.
Complete story on eNaming
UMG made a shrewd business decision when they decided to sell Uber.com for 2% of Uber. In fact, UMG was probably happy with the deal they struck overall considering how the original investment failed and that the acquisition costs of the original purchase of the domain were nominal. In a vacuum, there is good ROI on this deal at $1 million dollars.
Complete story on eNaming
