I was walking along the street recently when I saw a truck drive by with the word “Casino” emblazoned on the side. In fact it was promoting its auto repair shop called Casino Autos, but it got me thinking. How many stories are there of small operators owning valuable domain names which they then go on to sell for millions of dollars?
This article examines that question. And it all starts with Casino.com.
Casino.com was originally registered in 1994 by John Craven, a British entrepreneur. He held onto the domain until 2003 when he sold it to Mansion Limited, an online gambling company based in Gibraltar, for a reported $5.5 million. Mansion Limited has since used the domain to operate an online casino platform.
Below are some more stories of domain names owned by small operators who cashed out for vast sums.
Business.com
- Initial Ownership: Business.com was originally purchased by Marc Ostrofsky for $150,000 in 1999.
- Acquisition: In 2007, the domain was sold to RH Donnelley for $345 million. This transaction is one of the most well-known in the domain name industry.
Hotels.com
- Initial Ownership: Hotels.com was registered by David Roche in the early 1990s when he launched the site to provide hotel booking services.
- Acquisition: In 2001, Hotels.com was acquired by Expedia for approximately $11 million. This was a substantial amount at the time and demonstrated the value of a generic, highly descriptive domain.
Insure.com
- Initial Ownership: Insure.com was originally owned by a small insurance company, Insure.com, Inc., which used it as their primary website.
- Acquisition: In 2009, the domain was sold to QuinStreet, a marketing and media company, for $16 million. This acquisition highlighted the importance of strong, category-defining domains in the insurance industry.
CarInsurance.com
- Initial Ownership: CarInsurance.com was launched by a small company that used it as a platform to provide car insurance quotes and services.
- Acquisition: In 2010, QuinStreet acquired CarInsurance.com for $49.7 million, making it one of the highest domain sales in the insurance sector. This acquisition underscored the strategic value of owning a top-tier domain in a competitive market.
VacationRentals.com
- Initial Ownership: VacationRentals.com was a small business owned and operated by its founder who provided a platform for listing vacation rental properties.
- Acquisition: In 2007, HomeAway (now part of Expedia Group) purchased VacationRentals.com for $35 million. The founder reportedly made the purchase to keep it out of the hands of Expedia, which at the time was a direct competitor.
Sex.com
- Initial Ownership: Registered in 1994 by entrepreneur Gary Kremen.
- Acquisition: After a legal battle to reclaim the domain from a squatter, Kremen sold Sex.com in 2006 for $14 million to Escom LLC. It was later sold again in 2010 for $13 million.
Voice.com
- Initial Ownership: Owned by MicroStrategy, a business intelligence company.
- Acquisition: In 2019, Voice.com was sold to Block.one, a blockchain technology company, for $30 million. This transaction is one of the highest cash sales for a domain name.
PrivateJet.com
- Initial Ownership: Operated by a small aviation business.
- Acquisition: In 2012, PrivateJet.com was sold for $30.18 million. The buyer was Nations Luxury Transportation, LLC, making it one of the largest domain sales in the aviation industry.
Candy.com
- Initial Ownership: Owned by a small candy company.
- Acquisition: In 2009, Candy.com was sold to G&J Holdings, LLC, a company formed by two confectionery industry veterans, for $3 million. The new owners used it to build a large online candy store.
Toys.com
- Initial Ownership: Toys.com was initially registered and used by a small toy retailer.
- Acquisition: In 2009, Toys “R” Us acquired the domain for $5.1 million after winning a bidding war against other major toy retailers. This acquisition was part of a strategy to strengthen their online presence.
These examples vividly illustrate the immense value that can be derived from owning key domain names, often leading to substantial financial windfalls when these domains are acquired by larger corporations. They also highlight how savvy individuals and small players in the domain market can generate significant profits by quickly recognizing and capitalizing on emerging trends. This potential for lucrative returns is what makes the domain market so dynamic and exciting.
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