strategy Vivid Seats will acquire LasVegas.com deal as part of their Vegas.com transaction

[GeorgeK]

From an article I just wrote:

Fast forward to November 2023, when Vivid Seats announced the acquisition of Vegas.com for USD $240 million. This was widely reported, and of course isn’t a “pure” domain name deal (given that Vegas.com is a developed website) however most people simply focused on Vegas.com, and ignored the fact that LasVegas.com (worth far more than Vegas.com as a domain name name) was part of the deal!​

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https://freespeech.com/2023/12/06/v...-deal-as-part-of-their-vegas-com-transaction/​

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If $2.5 million per year is a feasible investment for a company to lease a domain name, for a company worth a mere $240 million, how much can much larger enterprises justify investing to capture the enormous economic benefits that flow from owning elite domain names? Instead of leasing the domain name over 35 years, what’s the value of a lump sum one-time all cash payment? Research the “relief from royalty method” of valuation, and you will find the answer.​

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In conclusion, elite domain names continue to be extremely valuable, as demonstrated by the ongoing lease of the LasVegas.com domain name, an important piece of the Vegas.com transaction that few have picked up on.​

 

[equity78]

From an article I just wrote:

Fast forward to November 2023, when Vivid Seats announced the acquisition of Vegas.com for USD $240 million. This was widely reported, and of course isn’t a “pure” domain name deal (given that Vegas.com is a developed website) however most people simply focused on Vegas.com, and ignored the fact that LasVegas.com (worth far more than Vegas.com as a domain name name) was part of the deal!​

​

https://freespeech.com/2023/12/06/v...-deal-as-part-of-their-vegas-com-transaction/​

​

If $2.5 million per year is a feasible investment for a company to lease a domain name, for a company worth a mere $240 million, how much can much larger enterprises justify investing to capture the enormous economic benefits that flow from owning elite domain names? Instead of leasing the domain name over 35 years, what’s the value of a lump sum one-time all cash payment? Research the “relief from royalty method” of valuation, and you will find the answer.​

​

In conclusion, elite domain names continue to be extremely valuable, as demonstrated by the ongoing lease of the LasVegas.com domain name, an important piece of the Vegas.com transaction that few have picked up on.​

Interesting George I like your part about the royalty method.