Bankruptcy court approves landmark domain name sale.
Judge Brendan Shannon of the United States Bankruptcy Court District of Delaware has approved Toys ‘R’ Us purchase of the toys.com domain name for $5.1M.
The domain name was auctioned last Friday as a continuation of an auction held the first week of February. In the original auction Faculty Lounge Partners bought the domain for $1.25M. As part of the sale to Toys ‘R’ Us (bidding as Eagle, LLC), Faculty Lounge Partners will pick up a $37,500 break up fee (3% of its stalking horse bid) and legal fee reimbursement.
Interestingly, Toys ‘R’ Us was at the first auction but wouldn’t top the $1.25M Faculty Lounge Partners bid. Instead, the toy company bought certain assets of eToys including eToys.com and customer lists.
The domains were auctioned off after The Parent Company, parent company of eToys, filed for bankruptcy in December. Other domains auctioned off in the initial auction included hobbies.com, birthdays.com, and pinata.com.