One of– if not the– most coveted domain names of all time has changed hands for $14M.
The Sex.com domain name was reportedly sold to Boston-based Escom LLC. I was under the impression that Internet Real Estate Group (IREG), formerly Deal Jam, had an option to buy this domain (or was at least in talks). Is Escom related to IREG? There is speculation (note: link contains adult content) but IREG denies any connection.
An article in the Philadelphia Inquirer in September 2005 discusses a lawsuit about a failed purchase of the sex.com domain name. The lawsuit was against Domain Name Acquistion Group LLC, which shares office space with IREG. IREG was also named in the original lawsuit. So there’s definitely a connection between IREG and the sex.com domain name. The connection remains to be seen.
Sex.com has a long and storied history. It was part of one of the biggest domain thefts in history. A con man tricked Network Solutions into transferring the domain to him. The original owner won the domain and a $65M judgement but the con man fled the country and never paid the original owner the legal award. The con man was captured in October 2005.
UPDATE: It now appears that the sale may have only been for a majority ownership in the domain.
UPDATE: Reuters is reporting the sale was for about $12M in cash and stock.