Charge.com sells for $17 Million

[lawpal]

The Daily Business Review (www.dailybusinessreview.com) reports that Charge.com was sold to Pipeline Data, Inc. for $17 million in cash, notes and stock.

The sale seems particularly notable to me, because it exceeds the sales price of sex.com by several million.

The Pipeline Data, Inc. Press Release indicates the purchase was based upon $7.5 million cash, and $9.5million common shares of Pipeline Data, Inc.

Also particulary noteworthy to me, is that $15 million in debt financing was provided as part of the acquisition package. I wonder if we shall see an increase in Institutional Investory Financing of Domain Name Acquisitions.

Note: The Daily Business Review is a subscription based paper online, but anyone in South Florida can pick up a copy to verify.

 

[mark]

Also particulary noteworthy to me, is that $15 million in debt financing was provided as part of the acquisition package. I wonder if we shall see an increase in Institutional Investory Financing of Domain Name Acquisitions.

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Possibly. I see that domainloans.com is already registered
Thanks for passing that info along.

 

[Edwin]

It's not just a domain - Charge.com has been online since 1996 as a "real" site. Don't let the copyright text in the footer mislead you... check archive.org to see.

So while it's a high-priced sale, it's another case where it's impossible to separate the value of the premium domain from the value of the site/business built on it.

 

[lawpal]

it's another case where it's impossible to separate the value of the premium domain from the value of the site/business built on it.

Agreed.

 

[carlton]

Charge.com generated $2.3 million in pretax income for the year ended December 31, 2004

The name itself obviously valuable and supportive of whatever business is built upon it. Edwin makes good point on difficulty separating value of the name from the underlying business.

 

[Limit$]

Still way too much. To bad back in the day I didn't register the name.

 

[Steen]

Seems low to me, I thought Charge.com was a very well established merchant account /gateway service and Authorize.net reseller.