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Here's the The Lowdown
from DN Journal,
updated daily
to
fill you in on the latest buzz going around the domain name industry.
The Lowdown is
compiled by DN Journal Editor & Publisher Ron
Jackson. |
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Marchex
Sells Over 200,000 Domains to Go Daddy - Will Now Focus on Mobile Advertising
Analytics
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Marchex,
Inc. (NASDAQ: MCHX),
who in recent years has morphed from
a major domain sales and development
company into a mobile advertising
analytics company, has sold
off the
bulk of its remaining domain
portfolio. Marchex announced this
morning that they have
entered
into a definitive agreement to sell
more than 200,000 domains to GoDaddy
Inc. (NYSE: GDDY), for $28.1
million, as well as additional
earn-out considerations subject
to certain sales targets. The
company also reported
moving another
$6.7
million in direct domain sales since January
2015 when
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it
began liquidating its portfolio in
earnest. Go
Daddy is widely recognized as the
world's biggest domain registrar but
they have expanded their service
offerings dramatically in recent
years and now think of themselves as the world’s largest technology provider dedicated to small businesses.
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Pete
Christothoulou
CEO, Marchex, Inc. |
Marchex
CEO Pete Christothoulou
said, "Our
complete focus is on
establishing Marchex as the
world’s leading mobile
advertising analytics company. A
significant and growing majority
of the consumer engagement and
sales driven by mobile
advertising happens offline,
such as through phone calls.
Narrowing our focus on this
opportunity, while growing our
balance sheet, strengthens
our ability to continue
delivering technology solutions
that bring accountability to
mobile advertising and transform
business performance for our
clients.”
Marchex
provided some additional
information on the transaction
in a series of bullet points,
stating:
-
From
a revenue standpoint, our
domains assets have
generated more than $290
million in cumulative
revenue (excluding domain
sales) and meaningful
profits, so they have been a
valuable and important part
of Marchex’s history.
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-
We’ve
used some of the cash flow
generated from our domains
assets to fund the
development of Marchex’s
market-leading Call
Analytics Platform,
which now generates more
than $100 million annually
and is the foundation of our
business going forward.
So in essence, the
cash generated from the
domains and other assets has
helped enable Marchex to
build a strong leadership
position in a growing market
of mobile advertising
analytics.
-
During the past decade, Marchex has enjoyed
being part of the domains
marketplace and we
believe that it remains
robust and entrepreneurial,
with plenty of room for
growth and innovation.
However, our business
has evolved to where domains
are not core to Marchex’s
focus on mobile advertising
analytics, so the time was
right for us to sell our
portfolio.
Our complete focus
is on establishing
Marchex as the world’s
leading mobile advertising
analytics company.
-
It is a win for both parties, as GoDaddy
gets a high-quality
portfolio and we can now
focus entirely on our core
business.
Furthermore, now
interested parties will be
able to find and purchase
high-quality domains that
were in our portfolio
through GoDaddy.
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(Posted
April 22, 2015)
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