sex.com $11.4 million domain sale fails -- lawsuit
 

Just noticed this story via Google News:

http://www.philly.com/mld/inquirer/n...a/12759624.htm

(if it asks you to register, go to http://news.google.com/ and search for sex.com -- clicking the story should get you in without registering)

According to the lawsuit, filed yesterday, Sex.com signed an $11.4 million deal last month with a Boston domain company to acquire the Internet address www.sex.com.

As part of the deal, Sex.com alleged that it made a $500,000 deposit to Web site broker Domain Name Acquisition Group L.L.C., the defendant in the case.

The civil complaint did not say why the deal fell apart but alleged that Domain Name engaged in "repeated untruths regarding the domain name Sex.Com, about other competing offers for the domain name Sex.Com, and various other material and relevant exaggerations and untruths."

$11.4 million would seem a bit low....

Haha that sounds like sex.com allright

am I understanding this correctly?

sex.com is the name of a company that was in the process of acquiring the domain sex.com?

:helpme

Yes, Elvis. It must have been a company (in Philadelphia) formed specifically for this transaction. The Boston company appears to have been brokering it. This would seem to explain why Gary Kremen's firm isn't a party to the lawsuit, according to the story.

i think it said sex.com paid money to the broker of the deal...the deal fell through and they want their money back from the broker.

but i could be wrong...also i cant understand why the seller of a property would have to put money up thoguh for the sale....weird

I thought it said the broker did not get his $500K deposit and that's what the case is about.

I am going to form the companies
Microsoft.com
Google.com
and a few others, who wants in on the deal?

Why in hell would you name your company "Sex.com" if you didn't own the domain sex.com. That is just incredibly stupid...lol It explains why they got taken for $500k. I guess they'd never heard of escrow.com either.

:1orglaugh

i think i need more coffee

sure, count me in. although, i have no fuckin clue what you can do with a domain called "google"..heh, sounds like a disease or something. oh well, I'll take a chance & go in with ya anyways.

:1orglaugh

I guess the Philadelphia guys didn't count on the transaction failing, if they created the company just for this deal to buy the domain.

lol

12345

monkey business

wow what a scam

NO Shit ......... :2 cents:
"repeated untruths regarding the domain name Sex.Com, about other competing offers for the domain name Sex.Com, and various other material and relevant exaggerations and untruths."

$11.4 million for the best domain in the business. WTF

this is funny ;)

My head feels as thick and confused after reading that as the first time I watched Fight Club.

OMG, sex.com spambot-free adult webmasters boards, it could be true...

that's an interesting and complicated situation

11 million... Guess the domain doesn't make as much as everyone thinks.

lol...I wonder how he couldn't saw this coming...

its clear the guy behind this has more money than brains lol

http://www.duluthsuperior.com/mld/du...s/12763766.htm

is a mirror of the complete original article, but doesn't seem to require a registration.

Or, just use Google News:

http://news.google.com/news?hl=en&q=...UTF-8&filter=0

Whose your daddy.

Bingo.

I have said that for a long time.

What he said

I am trying to look up the purchasing company in this transaction in regards to their date of incorporation but am having a hard time finding it. Anyone have any luck?

That name's got bad karma attached to it!

I bet someone told them to do a search for "lightspeed" :warning

iBanker: I found it by searching the State of Delaware:

https://sos-res.state.de.us/tin/controller (search for sex.com)

Entity Details
THIS IS NOT A STATEMENT OF GOOD STANDING
File Number: 4015566 Incorporation Date / Formation Date: 08/12/2005
(mm/dd/yyyy)
Entity Name: SEX.COM INC.
Entity Kind: CORPORATION Entity Type: GENERAL
Residency: DOMESTIC State: DE
REGISTERED AGENT INFORMATION
Name: REGISTERED OFFICE SERVICE COMPANY
Address: 203 NE FRONT STREET, SUITE 101
City: MILFORD County: KENT
State: DE Postal Code: 19963
Phone:

If any of the major players are interested in acquiring Sex.com contact me. I spoke to Gary about various deal structures (just before this other company took out an option that didn't come through) and can structure a deal that wil be very workable.

[email protected]

:thumbsup

Some additional details from XBIZ at:

http://www.xbiz.com/news_piece.php?id=10542

Gary said that Deal Jam still has an option on the domain name, but it's expiring soon. Would be interesting to know what the exercise price of that option is (i.e. Deal Jam would have presumably tried to flip the domain, to make a profit equal to the final price minus the exercise price, and also minus whatever the option itself cost).

If someone has a PACER login, it might be a way to read the entire Statement of Claim.

Kevin , you have layaway plan? I am poor :(

Too damned funny!!!

I would have thought it would sell for more.. wonder how much traffic it gets now

Actually you'd be very surprised. :)

Most of the really big domain deals all involve creative financing.

I'm even thinking about putting together an investment group for this one.

So anyone who might be interested let me know.

Contact me for that data.

No shit, is it just me or has that name gone thru some crazy times.

75k typeins, redirect them to a paying paysite at 3 to 4 cents a click. one $200 a month server is all you need. No staff, no marketing, nothing . Mill a year in income after expenses. From there it's just a matter of how much you are willing to pay for 1 mill a year income. 10 mill would get you a 10% return on your income. Little risk as this domain should always get this many tpe ins a day forever. There is no shortage of paysites that would buy this redirected traffic at 3 to 4 cents a click. If Gary had done this model instead of the clusterfuck of a network he made, he would be on easy street right now.

Um... Gary IS on easy street. And last I hear he was making somewhere around $400k per month from traffic sales, which is a bit more than the $1 million a year you mention. Also: he was a millionare when you were still dating girls in Jr. High, Choker. He started match.com, remember?

Is this a sig spot thread or a dead thread?

LOL, sure he is making 400k a month NET on traffic sales. If he were netting 400k a month do you think he would only get 10$ mill for the domain? Surely you are smarter than this. $400 k GROSS a month sure, but net? Forget about it. Yeah I know he started Match.com, heard he sold it for a lifetime membership.

so true. :1orglaugh :1orglaugh :1orglaugh

Originally Posted by CheneyRumsfeld
I am going to form the companies
Microsoft.com
Google.com
and a few others, who wants in on the deal?


I want in too!

Let's use "google.com" to sell freeze dried ice cream! We are going to be rich!

This Thread Needs an Orly!

Every time I see somebody knocking GK I just think 'hater'.

Go ahead and tell us how you would do it so much better if only - IF ONLY - you had been smart enough to be in Gary's position in the first place.

I am pretty damn sure I could get SEX.COM Pulling 600K a month profit within 4 months.

Cohens biz model was 100% correct.

I like Gary, he is kool but Cohens business model was better.

Interesting info. Thanks.