Report: Vegas.com Bought LasVegas.com in 2005 For Up To $90 Million Dollars
George Kirikos spotted an SEC document showing that Vegas.com purchased LasVegas.com in 2005, for what could be up to a $90 Million Dollars.
“In June 2005 , VEGAS.com, LLC entered into an agreement for the purchase of LasVegas.com on the following terms:
The agreement specified that a $12,000,000, one-time payment be made upon execution of the agreement along with monthly payments of approximately $83,000 for 36 months, $125,000 for the next 60 months, and then $208,000 for the next 36 months.
Per the terms of the agreement, after June 30, 2016, following the 132 initial monthly payments, VEGAS.com, LLC in its sole discretion may terminate the agreement and forfeit the domain name.
If VEGAS.com, LLC chooses not to terminate the agreement, they will continue making the monthly payments of approximately $208,000 until June 30, 2040, at which time the seller will transfer the domain name to VEGAS.com, LLC without further payment or cost to VEGAS.com, LLC.
As of June 2005, the present value of the future payment obligations was determined to be approximately $12,264,000, using a discount rate of 6.25 percent.
The initial $12,000,000 payment has been capitalized and is being amortized over 35 years, which is the term of the agreement.
The present value of the future purchase obligation of approximately $12,264,000 was capitalized and is being amortized beginning July 2005 and ending June 2016, which is the period that VEGAS.com, LLC is legally bound by the agreement to continue making payments.
Subsequent to June 2016, the agreement will continue on a month to month basis until June 30, 2040, and all payments made will be recognized as an expense.””
Back in August, We reported that Vegas.com was sold for what could be over $38 million with $15.5 million cash but that transactions also had payment terms to Publicly traded Remark Media, Inc. (NASDAQ: MARK)
We will point out again as we did when the Vegas.com sale was announced that Remark Media, Inc. has a small market cap which of today is just $60 Million, well below the $126 Million is what it is obligated to pay for Vegas.com and LasVegas.com.
Remark Media, Inc has a 52 week trading Range of a low of $3.53 and a high of $5.50
Average daily volume (#M) for Remark is just 31,211 shares.
Remark Media, Inc. closed at $4.21 a share yesterday.
The domain name LasVegas.com is registered to Stephens Media, which was also the registered owner of the domain name back before 2005, the date of the “sale”.
LasVegas.com is registered at Network Solutions directly by Stephens Media.
LasVegas.com servers are Vegas.com.
Vegas.com current owner is Vegas.com, LLC, and the domain is registered through brand protection company MarkMonitor.com
http://www.thedomains.com/2015/11/06/report-vegas-com-bought-lasvegas-com-in-2005-for-up-to-90-million-dollars/
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