Company has common investor with new top level domain company Donuts.
Struggling Austin internet company RetailMeNot spent $4.3 million to acquire second level domain names under a new top level domain name, an SEC filing revealed. The purchase was first reported by George Kirikos, and OnlineDomain wrote about it earlier today.
While the SEC filing doesn’t disclose the top level domain or registry, it almost certainly is Donuts. The common denominator is Austin Ventures, which backed both RetailMeNot and Donuts.
As I’ve opined before, Austin Ventures is most likely the reason RetailMeNot forked out money for Donuts’ previous .codes domain names.
This seems like an awful lot of money to spend on these domains, especially in light of the lukewarm reception of new top level domain names. That might be the kicker: the agreement was entered into before new top level domain names started rolling out on the market.
RetailMeNot has struggled with changes in Google’s search algorithm. It needs a way to attract traffic from more diversified sources, but I’m not sure using all of these domains will pay off. I’d be wary of this deal and the venture capital connection if I were a RetailMeNot investor.