It will come as no surprise to readers that sex sells on the
internet.
Not only does the World Wide Web abound with dating and
"friendship" sites but you can buy probably everything you
ever thought of - or which your best friend had suggested you
try.
So it was with some excitement that a news item was spotted
last week.
Sex.com, often touted as one of the most valuable internet
domain names, is due to be auctioned this week.
DOM Partners LLC, a New Jersey lender that backed a 2006
purchase of the domain name for a reported $US14 million
($NZ20 million), is foreclosing on the internet property, and
is due to auction it on March 18 at New York law firm Windels
Marx Lane & Mittendorf LLP, according to legal notices.
Bidding for the internet property, the tumultuous past of
which includes several lawsuits and two books, is due to
start at $US1 million.
The auctions of simple domain names are seen as rare
opportunities for internet entrepreneurs.
An auction for the www.pizza.com domain name in 2008
attracted bids above $US2.5 million.
But if it is true that sex sells, sex.com may be the most
valuable domain name in the world.
At one point, the website was making at least $US15,000 per
day, according to a 2008 book, The Sex.com Chronicles,
by lawyer Charles Carreon who has represented a former owner
of the site.
In January 2006, Escom LLC acquired the domain name from Gary
Kremen, founder of dating website Match.com and chief
executive of Grant Media.
Kremen registered the sex.com domain name in 1994.
A press statement announcing the 2006 sale said it was
"believed to be among the most significant domain sale
transactions in history".
Terms of that deal were not disclosed, but it has since been
reported that the deal was worth about $US14 million.
DOM Partners' loan to Escom has been in default for over a
year.
"The loan was in default and DOM partners is foreclosing
pursuant to its right under the security agreement," DOM's
lawyer Scott Matthews said.
Richard Maltz, an auctioneer at Maltz Auctions who is running
the sale, said there was considerable interest in it.
"We don't know who's serious and who's not, but prospective
bidders need a $1 million certified cheque.
"It should be interesting."
Mr Maltz said his firm was arranging for potential buyers
also to be able to bid online.
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