It seems quiet in the IDN world..
… but trust me, it just seems that way.
If like me, you keep an eye on the whois of top domains, you’ll see all sorts of things happening under the radar.
One such recent event I am familiar with, involves these monster domains:
照相机.com – Camera
汽车.com – Automobile
酒店.com – Hotels
首饰.com – Jewlery
黄页.com – Yellow Pages
игры.com – Games
музыка.com – Music
книги.com – Books
авто.com – Auto
квартиры.com – Apartments
This group of 10 top tier domains changed hands in an all cash deal in the high 6 figs recently (USD $xxx,xxx)
That’s for you to decide, but that’s the real world cost of acquiring the best of the best.
Just take a look again at that list above and consider the size of the keywords and the size of the target market.. mind boggling is what it is.
Unfortunately we can’t discuss exact prices, as it’s more than the buyer is willing to go public on, but we can take an exclusive peek inside the mind of the buyer.
I had the pleasure of meeting the investor in London a few months ago, just as this deal was being wrapped up, what’s interesting about this transaction, is that although the opportunity to partner and purchase a % was presented by a domainer, the investor himself was neither a “domainer” nor “end user”.
I see this becoming more and more typical as traditional investors are looking at non-traditional investment options.
While the buyer would like to retain a level of anonymity, I can certainly share that he is a 52 year old family man, with a Bachelor of Science in Hospitality Management from Florida International University.
I took the opportunity to fire some questions his way:
Q. Why do you see value in IDNs?
A. The value of domains (roman letters) are well established. It seems natural that countries with other languages will use domain names in their own language.
Q. Do you own any another domains?
A. Our group have more than a thousand domains but few are in the same category mentioned above, which I would call category killers.
Q. Do you think you comprehend the size of the domains you purchased?
A. Probably not, simply because of my conservative nature.
But as an example, if someone offered me 5 times what I paid for Hotels.com (in Chinese) I would refuse. In any other business such a statement would sound stupid to me.
Q. What are your plans for the domains?
A. Develop one or two domains hopefully with a strategic partner in that niche market.
If you are wondering how I fit into all this, well I am neither purchaser, vendor or broker. In fact my involvement in this transaction actually started a couple of years ago, when I made the initial vendor introduction in another big ticket unreported transaction that precluded this. Since then I guess you could say my role has been that of “confidant”.
.. still think nothing’s happening in the IDN world?