Mobile phone manufacturer gets domain name and trademark rights.
Zoom Technologies, a Chinese manufacturer of mobile phones, has announced it acquired the domain name Zoom.com as well as trademark rights to the Zoom name from Zoom Telephonics.
Zoom Technologies (NASDAQ: ZOOM) paid for the domain name and IP rights with 80,000 shares of common stock, which currently have a market value of about $350,000. Zoom Telephonics is an over-the-counter traded company that has about $400,000 in the bank — so don’t be surprised if they dump these shares on the market when cash runs low.
The price tag is surprisingly low for this domain and brand, and I think the big loser here is the Zoom Whitening brand from Discus Dental. This is a broadly advertised tooth whitening product that is stuck at the domain name ZoomNow.com. At least the company was smart enough to also acquire TeethWhitening.com. (Note: oddly, if you go to TeethWhitening.com it doesn’t appear to mention a connection to Zoom, despite saying the site is “objective”).
Frank Manning says
Please note that Zoom Telephonics is not allowed to sell any of the 80,000 shares for 6 months. After 6 months elapse, they(we) can sell 20,000 shares every 3 months. Zoom Telephonics is in the process of a rights offering, which should raise cash for the company. Zoom Telephonics just reported a profit for Q3 2010, with sales up 67% over Q3 2009.
Note also that many Zoom Telephonics shareholders own shares in Zoom Technologies due to a merger/spinoff that happened September 2009.
–Frank Manning, Zoom Telephonics President and CEO
Andrew Allemann says
Frank, thanks for the information.
Steve M says
350k’s not bad; but I betcha Rick S. would have nabbed at least 500k for it.