Company answers questions about its domain name portfolio.
MicroStrategy (NASDAQ: MSTR) announced yesterday that it sold the domain name Voice.com for $30 million in cash, shattering the previous record for a public all-cash domain transaction. I reached out to a company spokesperson with a few questions. Although the company was rather careful with its answers, I’m sure domain investors will like the company’s view on domains. The company also said it’s interested in equity deals.
DNW: $30 million is a record-breaking amount for a publicly announced domain sale. How did you arrive at this number? How long did you work on this deal?
MicroStrategy: In our opinion, previous domain name sales by others may have undervalued domain names. We can’t go into specifics about the negotiations surrounding the sale of the Voice.com domain name other than to say that we are pleased with the outcome.
DNW: You have some great first names such as Mike.com, Arthur.com and Frank.com. What’s the story behind why the company registered these domains?
MicroStrategy: We hold various domain names that have been used or are contemplated to be used by our business. We believe domain names like Mike.com, Arthur.com, and Frank.com are evocative and powerful, and can provide unique and significant value to a business.
Editor’s note: the company’s founder and CEO is Michael Saylor. The company owns both Mike.com and Michael.com. I suspect many of the first names were those of people connected to the company in the early days.
DNW: Should companies only contact you about your domains if they are willing to spend at least 7 figures? Or would you be open to deals below that amount?
MicroStrategy: We value each of our domain names based upon a number of factors, including the domain name’s potential uses and the value it would bring to a particular strategic transaction. We believe these domain names are launching pads and critical assets for billion dollar brands. Companies that have grand aspirations should contact us.
DNW: Is MicroStrategy only interested in all-cash deals?
MicroStrategy: We are open to opportunities with parties who can leverage these ultra-premium domain names for maximum market impact. We are particularly interested in opportunities involving equity or other strategic arrangements.