Deal will help monetize one of Live Current’s many valuable domain names.
Hot of the heels of its latest cricket media announcement, Live Current Media (OTC: livc.ob) has announced a new deal with Rob Monster’s Domain Strategies for the domain name Karate.com. Live Current and Domain Strategies will develop a new company to own and develop the domain name.
Because Live Current is publicly traded, we’ll likely get a good look at how this deal plays out through the company’s financials. We already know the general terms of the deal:
-Live Current provides the domain name, Domain Strategies provides $250,000 cash and will create/operate the new company
-Each party will get 50% of company
-Live Current will get the first $500,000 of distributions, Domain Strategies will get the second $500,000, then it will be split 50/50
-Live Current can pull out of the deal after 3 years if financial objectives set by the new company’s board are not met. Live Current will get the domain name back, but Domain Strategies will have an option to buy the domain name for $1,000,000.
This is a cost effective way for Live Current to monetize its valuable domain names. The company announced a deal earlier this year with Wanderspot LLC to develop some of its domain names. The price was high:
Wanderspot will be compensated (i) a base fee of $60,000 per month; (ii) a commission fee of 50% of Net Revenue (as defined in the Independent Contractor Agreement) that is generated by web sites developed by Wanderspot under the Independent Contractor Agreement, up to a maximum of commission fee of $35,000 per month during the term of the Independent Contractor Agreement; and (iii) three options, to purchase up to 20,000 shares of common stock of the Company, granted under the Company’s 2007 Incentive Stock Plan, to each of the following 3 individuals all of whom are principals of Wanderspot: Ethan Lowry, Adam Doppelt, and Patrick O’Donnell.
The Karate.com deal sounds a lot better to me, but we’ll see when Live Current releases its 8-K about the deal.