A Dark Blue Sea investor presentation (pdf)
suggests that the retail value of its 570,000 domain portfolio is about
$600 million. The presentation also provides a wealth of other
statistics and details on its deal with domain registrar GoDaddy.
Dark Blue Sea, an Australian company, is well known to domain name investors for its Fabulous domain registrar and domain parking services.
As of the end of 2007, approximately 152,000 of the company’s domain
names were profitable, meaning they eclipsed the $6.42 wholesale price
of domain registration. The company estimates the average retail value
of its domains to be $1,000, and also predicts that GoDaddy will help
it sell 45,000 domains over the coming five years. Dark Blue Sea inked
a partnership with GoDaddy earlier this year that involves a commission
and options for 7% of Dark Blue Sea. The options vest according to the
number of sales GoDaddy generates, which incentivizes the company to
make sales. Overall, Dark Blue Sea expects $25 million to $30 million
in profit from the GoDaddy deal over the next five years.
Source: Domain Name Wire