Company assigns accounting value to Frank Schilling’s domain portfolio, which it acquired this year.
GoDaddy (NYSE: GDDY) has assigned an $88.5 million accounting value to the approximately 375,000 domain names it acquired from Frank Schilling this year.
The company’s 10-Q filing with the SEC states:
The aggregate purchase price for the acquisitions completed during the three months ended March 31, 2020 was preliminarily allocated based upon our assessment of acquisition-date fair values with $54.0 million allocated to goodwill, none of which is tax deductible, $88.5 million to domain portfolio indefinite-lived intangible assets, $15.8 million to other identified finite-lived intangible assets and $9.1 million of net liabilities assumed.
That means the accounting value is about $235 per domain name.
Companies have varying incentives for how they value things for accounting purposes.
Technically, GoDaddy acquired three businesses from Frank Schilling. GoDaddy also acquired Over in the first quarter, which obscures the total consideration paid to Schilling. The 10-Q states:
In February 2020, we completed two acquisitions for net cash purchase consideration of $149.2 million, of which $2.8 million is payable in future periods upon expiration of the contractual holdback period. One of the acquisitions was the first of a series of three related transactions, the latter two of which were completed in April 2020 for additional cash purchase consideration of $44.9 million, of which $1.4 million is payable in future periods upon expiration of the contractual holdback period. As the three related transactions were in contemplation of one another and formed a single transaction designed to achieve an overall commercial effect, they will be accounted for as a single business combination. The acquisitions were not material to our results of operations.
Stephen says
They should do this for beginner domain holders.
John says
I wonder if the acquired list of names can be made public.
Frank says
This is exactly what GoDaddy does. At every sleazy turn that prioritizes goals and agendas that have nothing to do with the benefit or long term interests of their customer base. Just one more example of how these truly despicable human beings turn their back on everyone and every thing that allowed them to become who they are in the first place. Imagine the long term loyalty of thousands/millions of domain owners that helped them create a massive company, so they can now invest hundreds of millions of dollars to screw domain investors at every point they can. Their goal is very simple: undermine domain value at every turn. Just look at who their key influence points are, and the relativity they have to Silicone Valley money. Reduce the value of domain investors by any means possible. Only GoDaddy has the audacity to watch a public pandemic take place, a global quarantine that harms millions of people, and in between staging bogus campaigns and telling everyone about all of the “free stuff” they are giving away – lick their chops in every shareholder report about the “super boost” of revenue being gained from their expiry auctions. They celebrate the literal demise of others as a revenue line, with fresh income on every domain name deletion, as once-optimistic owners are forced by corrupt politicians to decide on food or renewal fees. The same GoDaddy that couldn’t put pen to paper for six seconds to stick up to ICANN – on behalf of their 20 million strong customer base – as capitalists realized they could exploit .com owners for more financial gain. These people are not your friends. They have been wolves that tore off the lamb’s clothing long, long ago.
Mass migration is the only answer. Punish these people where it counts before it is absolutely too late. They do not deserve the incredible privilege that they have been given. Their evil nature has been right in front of us the whole time, whether they are buying portfolios to intentionally devalue them, publishing valuation systems to gut leverage, or shooting elephants in the head. As Bill Gates once said, “it is all the same hamburger”.
Billy says
You sound exactly like a certain Epik shill.
Frank says
I am not sure what that means, unless it is some clever play on words for schilling. Didn’t Frank have a great collection of names?
Billy says
I mean you sound just like Intelliname who works with Epik. You can go to Namepros and read his posts, some of the same language. I’m sure it could be a coincidence.
Frank says
DNForum for life sorry. This says more about you than me.
Lifesavings.online says
I moved to DNF too. Namepros is pathetic. They said I throw ‘temper tantrums’ because I caught PROS lying. As a result, the threatened to ‘visit my house on the 5th’ to “fight”.
Nothing was done.
Further, they smugly suggested I ‘PM them if I have any problems… After they just restricted my ability to PM.
Next, they told me to to rant in threads, but instead ‘report them’ (oh you can’t have any ‘conflicts’ there…snowflakes).
But again, they had just removed my ability to ‘report.’ All the mods do is propaganda and provoke, and allow their users too, with mutli-shill accounts. That is, as long as you are on the ‘right side of propaganda’.
They are so arrogant, I mean here, this is a DM. yes, you can put DM out publicly. There is nothing private about it, so don’t be fooled.
https://lifesavings.online/wp-content/uploads/2020/05/arrogant.png
Yes…the arrogance. The last people I would trust are NAMEPROS.
When ever someone says ‘trust us’, you run.
Billy says
“DNForum for life sorry. This says more about you than me.” It tells me you like hanging out at a dead forum. There have been 0 posts in the last 2 hours. The place has been dead for awhile now.
Lifesavings.online says
Perhaps some feel satisfaction by writing their opinions without all the trolls?
Some good people do get more satisfaction out of their CONTRIBUTIONS…Not necessarily what they ‘get back’.
What is the quality? What are their biases and tendencies?
One little example @NAMEPROS: I wrote a post about how I kick out anyone that hits 2-3 404 within my website. The thread went no where. Nothing constructive. Instead:
Mod decided chime in to say it was not a good method.They said their site has 404s…they would kick legitimate users.
That is not a good argument. Namepros would be wise to delete 404 links (yes you can automate it!).
They just don’t know how. Instead, they trash my advice simply because they, themselves are inept.
I choose not to entertain a cess-pool bad information, false accusations and outright lies.
Right, it’s fine to go claim someone is ‘on drugs’ and ‘has mental issues’ – without evidence.
Hard pass.
FX says
GoDaddy Deeply overpaid for Frank’s left over portfolio of garbage, typos and mostly adult domains. Someone failed to do any form of due diligence there.
Congrats to Frank for really sticking it to GoDaddy after all his troubles.
BullS says
I sell so many domains at Amazon Domain market place and Amazon will wipe off GD and those nitwits.
Lifesavings.online says
He must of sold a lot then. In 2007, the experts said,
“His portfolio has a low value of about $500 million and a real value likely over $1 billion…and third, did I mention that Frank is one of the nicest guys you will ever want to meet?! I see him as the #1 ambassador for our industry,” Schwartz added.”
http://www.dnjournal.com/cover/2007/december.htm
So then, did the value of domains drop THAT MUCH, or did he really sell off 90% of the portfolio since then?
How much of what was said is true. Are you being mislead? Perhaps Domainers have a false sense of riches? Are wild claims of success driving newbie domainers to lose $?
snoopy1267 says
“So then, did the value of domains drop THAT MUCH, or did he really sell off 90% of the portfolio since then?”
It was never worth that amount or anywhere near it.
Frank was offered $100million around 2004. Around 2006 was the peak of the market and todays values are about half. Some areas are way up (like singular one word names) but much of the market has caved over the last couple of decades.
joesaba2014 says
The move between Uniregistry and Godaddy was to lead us to believe that the latter was acquiring Frank’s domain portfolio and Frank still had his domain portfolio with his previous company with a custodian in the Cayman Islands.
Uniregistry’s problem was that revenue was not real gross sales were not from most domain domain sales since its early Uniregistry as an ICANN accredited registrar.
With domainnamesales.com and later with Uniregistry, the broker domains dedicated themselves to selling Frank’s premium domains in a post by Jeff Grabiel, former Vice President of Sales at Uniregistry describing the sales of $ 105,000,000 domains, Frank, CEO.
Uniregistry was not good for many domainers with extensive domain portfolios at the discounted price hike the alarm went off and many of the best domainers left with much of their premium domains.
This and the inificacia of having own sales of domains, with many renewals in the Marketplace, Landing page Ads only for Frank’s underdogs and this was insurmountable, the gross income was not the ones that published 50% were Frank’s domain sales for his Name Administration Inc created in February 2002 in the Cayman Islands.
. Since I started my time here, we have sold over $ 105,000,000 in domains from Frank’s portfolio alone. https://uniregistry.com/blog/post/to-price-or-not-price-your-domain-name
Tony says
Yun Ye stands as the undisputed domain portfolio seller King.
On another note, this was another depressing average price per domain for any small fry that hopes to one day sell their own portfolio.
Mark Thorpe says
Frank’s domain portfolio was the best that was not bought yet. Lot’s of good end-user domains. GoDaddy got a good deal IMO.
Ģ. Kizenbahs says
Leave all domains away from this company.
John Gleeson says
When you take out the renewal costs incurred year on year, it works out at just $74 per name, that’s a total disgrace, daylight robbery, everyones on crack cocaine. Yearly renewal costs on dot com domains are savage and embittering. Even the greatest domain investor of them all had to take a massive hit because of compounding renewal fees. Disgraceful, theft, gov/corp fraud. Investing in used lottery tickets has more value. Go big to hell or go home, no matter what way you look at it you can’t win with renewal fees!! Time for all out war on corporations and governments. Who’s not eating your lunch right now? Time to run a raccoon for the next US President!!