Tucows Sells Million Dollar Portfolio
According to an 8-K Form filed with the Securities and Exchange Commission late yesterday, Tucows entered into an agreement to sell a small portfolio of 2,553 domain names for an aggregate price of $1,000,000. Payment will be made in all cash, with $900,000 being paid at the close of the sale, $50,000 in August and the final $50,000 being paid in one year.
An interesting note in the filing, states “The agreement further provides that the purchaser will be entitled to purchase up to an additional $1.8 million of domain names from Tucows.com Co. between today and June 2010 on terms similar to the Agreement.”
It would be interesting to know what terms are included in this agreement, and whether the names were sold because of their intrinsic domain value, or if they were sold based on a revenue multiple. If it was the later, I would be curious about how much of a revenue multiple it is.
Congratulations to Tucows!
Reach out to Elliot: Twitter | Google + | Facebook | Email