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LasVegas.com
LasVegas sold for $90 million!
Domain investor George Kirikos, has dug up the financial reports of the Vegas.com owners.
According to Kirikos, Vegas.com paid $12 million dollars cash in 2005, to acquire the domain LasVegas.com.
But that’s just the tip of the iceberg.
The analysis of the financial statements reveals that LasVegas.com was sold for an astounding $90 million dollars in total payments.
The payment plan, scheduled to be completed over 35 years, spans 2005 to 2040.
In June 2005, VEGAS.com, LLC entered into an agreement for the purchase of LasVegas.com. 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.
Source: Domaingang
Source: NamePros
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