Minimum bids, asset purchase agreement, and 10% deposit required by February 25.
In the continuing saga of Toys.com, a new auction will be held February 27. The domain name was originally won at a bankruptcy auction earlier this month for $1.25M by Faculty Lounge Partners. However, another party indicated it may be willing to pay more for the domain name.
Faculty Lounge, of which domain name lawyer Ari Goldberger is a partner, will be the stalking horse bidder for the auction. If Faculty Lounge does not win the domain in the new auction, it will be paid a break up fee of approximately 3% of the sale price in addition to its legal fees.
New bidders will have to top $1.25M plus the stalking horse fees, so I estimate the minimum price would be about $1.35M. To participate in the February 27 auction bidders will need to submit an initial bid and 10% deposit by February 25. That means a typical deposit will be about $135,000. As of the time of writing, no formal bids have been received, but creating an asset purchase agreement generally requires substantial legal work.