Hecta Media Acquires Large Domain Portfolio
Congratulations to Clark Landry and his team at Hecta Media on their recent portfolio acquisition. According to a news release on Forbes this morning, publicly traded Hecta Media (AIM Exchange) purchased a portfolio consisting of approximately 60,000 domain names for $1,450,000. They also retain the option to purchase two additional portfolios for $1,900,000. According to the release, the company expects revenues of $750,000 annually, which is important because the renewal fees will be over $400,000 per year (assuming they are all .com names). Based on my back of the napkin calculations, this is just over a 4 year revenue multiple.
I had the chance to meet with Clark Landry, CEO of Hecta Media, several months ago in New York, and he is a dynamic person, with an entrepreneurial spirit. When we were initially speaking, I had thought most large portfolios for sale with good names were significantly more expensive than what Hecta was able to pay for it. My advice to Clark would be to get pare down the portfolio of non-producing, poor names to save on the renewal fees. Sometimes you have but a bucket of rocks to find some gems.
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