Clek Media Inc. (« Clek ») today announced that it has brokered the world-record sale of the domain FUND.COM for US$9,999,950 in an all-cash transaction. Clek, a media consulting firm, represented the seller of the domain, assisting in both the negotiation and closing of the transaction. The buyer is Fund.com Inc. (OTCBB: FNDM), a New York firm previously named Meade Technologies Inc. To date the buyer has revealed their plans for the domain mostly in filings with the US Securities and Exchange Commission.
Clek believes that the nearly $10 million purchase price for FUND.COM represents the highest price ever paid for an Internet domain. The purchase price tops what the Guinness World Records books report as the highest previous price, the memorable BUSINESS.COM purchase. Ex-Disney executive, Jake Winebaum of eCompanies Ventures, acquired BUSINESS.COM for $7.5 million in 1999, which created some public media controversy at that time for the seemingly high price. However, in July 2007 BUSINESS.COM was sold to yellow pages publisher, RH Donnelly, for $345 million, 47 times the purchase price of the domain.
Business and Wall Street investors continue to assign higher values to internet domains. According to MSNBC, the domain CREDITCARDS.COM was acquired for $2.75 million all-cash and SEC filings reveal that the $20 billion hedge fund, American Capital Strategies, and Austin Ventures invested $135 million in CREDITCARDS.COM. Regarding the CREDITCARDS.COM sale, MSNBC quoted ClickSuccess CEO Dan Smith, « It’s like prime real estate, there’s only so much of this real estate to go around. I feel like we bought a slice of Park Avenue. »