Archeo will remain a division of Marchex instead of becoming its own publicly traded company.
Marchex has canceled its plan to spin off its domain name business into a separate public company, at least for now.
The company announced plans last November to spin off its domain business into a new company called Archeo. Marchex had long neglected its portfolio of over 200,000 domain names, and making it part of a separate company would allow it to better monetize the asset.
Since then, the group sold some of its pay-per-click assets, which ultimately made the business too small (at this time) to justify the costs of being a public company.
It also seems that Marchex was going to miss the cashflow that the domain business throws off. The company also announced that it is going to use a portion of Archeo’s cashflow to fund an ongoing quarterly dividend.
Despite canceling the plans, Archeo will operate as a separate division of Marchex.
Company officials told Domain Name Wire that it is not changing its business model from what its plans were for the public company. In other words: Archeo will still sell its domains, buy new ones, and look for partnerships to develop its best domains.