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Demand Media paid $18 million for Name.com

March 24, 2013 by Raymond Hackney

By: RH

Back on January 7,2013 I was the first to break the news of Demand Media 
Name_Logo_ (DMD) acquiring Name.com on MorganLinton.com. At the time there were no details of the price Demand paid for the Denver based registrar. I sat in on the conference call in February and there was no mention. After the call I emailed investor relations and they said they were not releasing it. Since this is my background and not technology I knew the acquisition was a material event and that I had to wait for the 10K.

Well now the 10K is out and the numbers are in on the acquistion. All numbers (In thousands, except per share amounts)

Goodwill
$
10,997

Customer relationships
4,784

Owned website names
1,730

Trade names
705

Non-compete agreements
180

Technology
74

Other assets acquired (liabilities assumed), net
(470
)
 
 
Total
$
18,000


On
December 31, 2012, the Company completed the acquisition of the net
assets of Name.com, a retail registrar company based in Denver,
Colorado. The purchase consideration of
$18,000 comprised an initial cash payment of $16,200 and the remaining $1,800
is subject to a hold back to satisfy post-closing indemnification
obligations as well as a working capital adjustment and any remaining
portion of such hold back amount that is not subject to then pending
claims will be paid to the selling shareholders prior to or on the
18-month anniversary of the closing of the transaction. Developed
technology, customer relationships and owned website names have an
average useful life of
4
years, non-compete arrangements have a useful life of 5 years and trade
names have an indefinite useful life.  Goodwill, which is comprised of
the excess of the purchase consideration over the fair value of the
identifiable net assets acquired, is primarily derived from assembled
workforce and the Company's ability to generate synergies with its
services. Goodwill of approximately
$10,500 is expected to be deductible for tax purposes.
All this info can be found in the Demand Media 10K found here
Congrats again to Bill Mushkin, in full disclosure Name.com is an advertiser on Hybrid Domainer.

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Filed Under: Name.com

About Raymond Hackney

Raymond Hackney has been involved with domain names since 1997. One of the most prolific writers in the domain industry and founder of TLDinvestors.com and 3Character.com

Comments

  1. dman says

    March 24, 2013 at 1:59 am

    Did that all go to Bill ? Did Paul or Jared get a big payday ?

  2. Susa says

    March 24, 2013 at 2:03 am

    I sure hope the other people there got some of that $18,000,000 the people are what make them cool,not their prices.

  3. Jonathon says

    March 24, 2013 at 12:13 pm

    That is a nice price for them, were they owned 100% by Mushkin, like Parsons owned Go Daddy ?

  4. Snowballz says

    March 24, 2013 at 12:15 pm

    I see thedomains made sure to copy your work, classy industry. I don’t live far from Denver and always wanted to check out their headquarters. Hope they stay hip and cool.

  5. RJ says

    March 26, 2013 at 5:06 am

    They own enom? Not a good sign…hate the high pressure calls and high prices

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