BankRate Reports Over $80 Million in Domain Name Acquisitions
You can have a look at a SEC filing from BankRate.com, which provides details into its recent acquisitions, and it identifies over $80,000,000 in domain name acquisitions. The company specifically identifies what it spent on the domain names it acquired, although some of that value seems a bit high from my perspective. The total domain name spend recorded in the filing was $84,880,000.
Some of the domain names the company mentions that it acquired includes CreditCards.com ($26,500,000), CreditCards.ca ($650,000), InsuranceQuotes.com ($5,900,000), CD.com ($500,000), NetQuote.com ($40,900,000), Bargaineering.com ($2,700,000), CarInsuranceQuotes.com ($7,500,000) and a couple of others.
The figures mentioned above are specifically for these domain names and do not include customer lists or technology. The costs for everything else are also included in the filing but may be treated differently from the domain assets when it comes to taxes. I also suppose the domain name obviously increases in value when something is built on it, and perhaps that includes the goodwill associated with the brand.
I know it may seem far fetched that NetQuote.com was recorded as a $40 million domain acquisition, but here’s the exact quote from the filing: “Approximately $92.0 million was recorded as intangible assets consisting of Internet domain name for $40.9 million, customer relationships for $46.0 million, and developed technology for $5.1 million.”
One other interesting thing I noticed was BankRate’s amortization treatment for domain names. According to the filing, they amortize domain names from anywhere from 5 years to 25 years, depending on the domain name. I have no accounting experience so I won’t comment on why, but it’s interesting to note.
Thanks to George Kirikos for the tip.