Financial company picks up spectacular domain name for eight-figures.
Rocket Companies (NYSE: RKT), the parent of Rocket Mortgage and other companies, paid at least $14 million to acquire the domain name rocket.com.
Elliot Silver first spied this transaction and confirmed Hilco Digital’s role in the sale. George Kirikos found the transaction price in an SEC filing for the seller, L3Harris.
The $14 million haul is net of any fees, so it’s likely Rocket paid a bit more for the domain.
Andrew Miller, who oversaw the transaction on behalf of the seller, commented on LinkedIn about whether the price was fair (although he wouldn’t confirm the price):
…I cannot confirm that but I do have some thoughts on a few of the comments on George’s post, implying the price of the transaction referenced was too cheap. I have now had the lead seat for several 8 figure domain transactions in the past 3 years, as well as others between $7.5m-$9.9m. There have not been too many 8 figure domain asset transactions historically (I have overseen 6) but I am confident the others who have would agree that just because a company has a massive market cap or cash balance sheet (for example, Google, Amazon, Facebook or L3Harris )does not mean they will pay or receive an “on demand” price for the asset. They did not get to that market cap that way, that is for sure. It is easy for someone who has probably never been at that size of a table to “monday morning QB” that the price was too low. I cannot tell you how many times a client of this size has drawn a line in the sand, and is willing to walk away. The key, as always, is having a clear zone of possible agreement (“ZOPA”) and a win-win outcome for both sides. People like to point out the $30m Voice*com deal, done at a time of web 3 mania, and from what I can see, may not be working out so well. If both sides are happy with the outcome of a business transaction, that is what defines its success.
According to NameBio, this is the fourth-highest publicly reported domain name sale of all time.
Andrew Miller makes a great point: The key, as always, is having a clear zone of possible agreement (“ZOPA”).
If you have the right domain, timing, and the right buyer a ‘price range’ is often the best approach. Only the most diamond-handed cash rich sellers can set an ‘exact price’ regardless of buyer desire and demand.
If I have a price range and the buyers budget overlap, sometimes I’ve found it best to make the deal even when its the bottom of my range.
Every domain is case by case, but never underestimate the value of maintaining liquidity in the domain game. Be careful following the strategy of the 1%, if you are not yet in that buyer/seller class.
Great sale. I agree entirely with Andrew Miller.