sex.com $11.4 million domain sale fails -- lawsuit - GoFuckYourself.com

GeorgeK · 09-28-2005, 08:20 AM

Just noticed this story via Google News:

http://www.philly.com/mld/inquirer/n...a/12759624.htm

(if it asks you to register, go to http://news.google.com/ and search for sex.com -- clicking the story should get you in without registering)

According to the lawsuit, filed yesterday, Sex.com signed an $11.4 million deal last month with a Boston domain company to acquire the Internet address www.sex.com.

As part of the deal, Sex.com alleged that it made a $500,000 deposit to Web site broker Domain Name Acquisition Group L.L.C., the defendant in the case.

The civil complaint did not say why the deal fell apart but alleged that Domain Name engaged in "repeated untruths regarding the domain name Sex.Com, about other competing offers for the domain name Sex.Com, and various other material and relevant exaggerations and untruths."

$11.4 million would seem a bit low....

pradaboy · 09-28-2005, 08:28 AM

Haha that sounds like sex.com allright

ElvisManson · 09-28-2005, 08:33 AM

am I understanding this correctly?

sex.com is the name of a company that was in the process of acquiring the domain sex.com?

GeorgeK · 09-28-2005, 08:37 AM

Yes, Elvis. It must have been a company (in Philadelphia) formed specifically for this transaction. The Boston company appears to have been brokering it. This would seem to explain why Gary Kremen's firm isn't a party to the lawsuit, according to the story.

Phoenix · 09-28-2005, 08:38 AM

Quote:

Originally Posted by ElvisManson

am I understanding this correctly?

sex.com is the name of a company that was in the process of acquiring the domain sex.com?

i think it said sex.com paid money to the broker of the deal...the deal fell through and they want their money back from the broker.

but i could be wrong...also i cant understand why the seller of a property would have to put money up thoguh for the sale....weird

pradaboy · 09-28-2005, 08:40 AM

Quote:

Originally Posted by Phoenix

i think it said sex.com paid money to the broker of the deal...the deal fell through and they want their money back from the broker.

but i could be wrong...also i cant understand why the seller of a property would have to put money up thoguh for the sale....weird

I thought it said the broker did not get his $500K deposit and that's what the case is about.

CheneyRumsfeld · 09-28-2005, 08:40 AM

I am going to form the companies
Microsoft.com
Google.com
and a few others, who wants in on the deal?

ElvisManson · 09-28-2005, 08:41 AM

Quote:

Originally Posted by GeorgeK

Yes, Elvis. It must have been a company (in Philadelphia) formed specifically for this transaction. The Boston company appears to have been brokering it. This would seem to explain why Gary Kremen's firm isn't a party to the lawsuit, according to the story.

Why in hell would you name your company "Sex.com" if you didn't own the domain sex.com. That is just incredibly stupid...lol It explains why they got taken for $500k. I guess they'd never heard of escrow.com either.

Phoenix · 09-28-2005, 08:42 AM

Quote:

Originally Posted by pradaboy

I thought it said the broker did not get his $500K deposit and that's what the case is about.

i think i need more coffee

Babagirls · 09-28-2005, 08:43 AM

Quote:

Originally Posted by CheneyRumsfeld

I am going to form the companies
Microsoft.com
Google.com
and a few others, who wants in on the deal?

sure, count me in. although, i have no fuckin clue what you can do with a domain called "google"..heh, sounds like a disease or something. oh well, I'll take a chance & go in with ya anyways.

viper12047 · 09-28-2005, 08:45 AM

GeorgeK · 09-28-2005, 08:47 AM

Quote:

Originally Posted by ElvisManson

Why in hell would you name your company "Sex.com" if you didn't own the domain sex.com. That is just incredibly stupid...lol It explains why they got taken for $500k. I guess they'd never heard of escrow.com either.

I guess the Philadelphia guys didn't count on the transaction failing, if they created the company just for this deal to buy the domain.

Drake · 09-28-2005, 08:53 AM

lol

12345

Ace-wtf · 09-28-2005, 08:58 AM

monkey business

MrIzzz · 09-28-2005, 09:05 AM

wow what a scam

JFK · 09-28-2005, 09:08 AM

Quote:

Originally Posted by Ace-imlive

monkey business

NO Shit .........

"repeated untruths regarding the domain name Sex.Com, about other competing offers for the domain name Sex.Com, and various other material and relevant exaggerations and untruths."

Mr. Hollywood · 09-28-2005, 09:12 AM

$11.4 million for the best domain in the business. WTF

linuxguy · 09-28-2005, 09:13 AM

this is funny ;)

EroticySteve · 09-28-2005, 09:15 AM

My head feels as thick and confused after reading that as the first time I watched Fight Club.

Trent Edison · 09-28-2005, 09:33 AM

OMG, sex.com spambot-free adult webmasters boards, it could be true...

hova · 09-28-2005, 09:35 AM

that's an interesting and complicated situation

TheDoc · 09-28-2005, 09:38 AM

11 million... Guess the domain doesn't make as much as everyone thinks.

Rui · 09-28-2005, 09:42 AM

lol...I wonder how he couldn't saw this coming...

its clear the guy behind this has more money than brains lol

GeorgeK · 09-28-2005, 10:05 AM

http://www.duluthsuperior.com/mld/du...s/12763766.htm

is a mirror of the complete original article, but doesn't seem to require a registration.

Or, just use Google News:

http://news.google.com/news?hl=en&q=...UTF-8&filter=0

BradShaw · 09-28-2005, 10:11 AM

Whose your daddy.

AlienQ - BANNED FOR LIFE · 09-28-2005, 10:15 AM

Quote:

Originally Posted by TheDoc

11 million... Guess the domain doesn't make as much as everyone thinks.

Bingo.

I have said that for a long time.

Dalai lama · 09-28-2005, 10:19 AM

Quote:

Originally Posted by TheDoc

11 million... Guess the domain doesn't make as much as everyone thinks.

What he said

iBanker · 09-28-2005, 10:21 AM

I am trying to look up the purchasing company in this transaction in regards to their date of incorporation but am having a hard time finding it. Anyone have any luck?

LiveDose · 09-28-2005, 10:26 AM

That name's got bad karma attached to it!

Holly · 09-28-2005, 10:26 AM

Quote:

Originally Posted by JFK

"repeated untruths regarding the domain name Sex.Com, about other competing offers for the domain name Sex.Com, and various other material and relevant exaggerations and untruths."

I bet someone told them to do a search for "lightspeed"

GeorgeK · 09-28-2005, 10:30 AM

iBanker: I found it by searching the State of Delaware:

https://sos-res.state.de.us/tin/controller (search for sex.com)

Entity Details
THIS IS NOT A STATEMENT OF GOOD STANDING
File Number: 4015566 Incorporation Date / Formation Date: 08/12/2005
(mm/dd/yyyy)
Entity Name: SEX.COM INC.
Entity Kind: CORPORATION Entity Type: GENERAL
Residency: DOMESTIC State: DE
REGISTERED AGENT INFORMATION
Name: REGISTERED OFFICE SERVICE COMPANY
Address: 203 NE FRONT STREET, SUITE 101
City: MILFORD County: KENT
State: DE Postal Code: 19963
Phone:

KRL · 09-28-2005, 10:51 AM

If any of the major players are interested in acquiring Sex.com contact me. I spoke to Gary about various deal structures (just before this other company took out an option that didn't come through) and can structure a deal that wil be very workable.

[email protected]

GeorgeK · 09-28-2005, 03:20 PM

Some additional details from XBIZ at:

http://www.xbiz.com/news_piece.php?id=10542

Gary said that Deal Jam still has an option on the domain name, but it's expiring soon. Would be interesting to know what the exercise price of that option is (i.e. Deal Jam would have presumably tried to flip the domain, to make a profit equal to the final price minus the exercise price, and also minus whatever the option itself cost).

If someone has a PACER login, it might be a way to read the entire Statement of Claim.

Juicy D. Links · 09-28-2005, 03:23 PM

Quote:

Originally Posted by KRL

If any of the major players are interested in acquiring Sex.com contact me. I spoke to Gary about various deal structures (just before this other company took out an option that didn't come through) and can structure a deal that wil be very workable.

[email protected]

Kevin , you have layaway plan? I am poor

Webby · 09-28-2005, 03:26 PM

Too damned funny!!!

RogerV · 09-28-2005, 03:29 PM

I would have thought it would sell for more.. wonder how much traffic it gets now

KRL · 09-28-2005, 03:32 PM

Quote:

Originally Posted by Juicy D. Links

Kevin , you have layaway plan? I am poor

Actually you'd be very surprised.

Most of the really big domain deals all involve creative financing.

I'm even thinking about putting together an investment group for this one.

So anyone who might be interested let me know.

KRL · 09-28-2005, 03:33 PM

Quote:

Originally Posted by RogerV

I would have thought it would sell for more.. wonder how much traffic it gets now

Contact me for that data.

Semi-Retired-Dave · 09-28-2005, 03:38 PM

Quote:

Originally Posted by pradaboy

Haha that sounds like sex.com allright

No shit, is it just me or has that name gone thru some crazy times.

Choker · 09-28-2005, 03:55 PM

75k typeins, redirect them to a paying paysite at 3 to 4 cents a click. one $200 a month server is all you need. No staff, no marketing, nothing . Mill a year in income after expenses. From there it's just a matter of how much you are willing to pay for 1 mill a year income. 10 mill would get you a 10% return on your income. Little risk as this domain should always get this many tpe ins a day forever. There is no shortage of paysites that would buy this redirected traffic at 3 to 4 cents a click. If Gary had done this model instead of the clusterfuck of a network he made, he would be on easy street right now.

Donny · 10-03-2005, 11:21 AM

Quote:

Originally Posted by Choker

75k typeins, redirect them to a paying paysite at 3 to 4 cents a click. one $200 a month server is all you need. No staff, no marketing, nothing . Mill a year in income after expenses. From there it's just a matter of how much you are willing to pay for 1 mill a year income. 10 mill would get you a 10% return on your income. Little risk as this domain should always get this many tpe ins a day forever. There is no shortage of paysites that would buy this redirected traffic at 3 to 4 cents a click. If Gary had done this model instead of the clusterfuck of a network he made, he would be on easy street right now.

Um... Gary IS on easy street. And last I hear he was making somewhere around $400k per month from traffic sales, which is a bit more than the $1 million a year you mention. Also: he was a millionare when you were still dating girls in Jr. High, Choker. He started match.com, remember?

imaginax · 10-03-2005, 11:26 AM

Is this a sig spot thread or a dead thread?

Choker · 10-03-2005, 02:21 PM

Quote:

Originally Posted by DonovanPhillips

Um... Gary IS on easy street. And last I hear he was making somewhere around $400k per month from traffic sales, which is a bit more than the $1 million a year you mention. Also: he was a millionare when you were still dating girls in Jr. High, Choker. He started match.com, remember?

LOL, sure he is making 400k a month NET on traffic sales. If he were netting 400k a month do you think he would only get 10$ mill for the domain? Surely you are smarter than this. $400 k GROSS a month sure, but net? Forget about it. Yeah I know he started Match.com, heard he sold it for a lifetime membership.

SeniorX · 11-26-2005, 02:10 PM

Quote:

Originally Posted by Choker

Yeah I know he started Match.com, heard he sold it for a lifetime membership.

so true.

Shelly L · 11-26-2005, 02:42 PM

Originally Posted by CheneyRumsfeld
I am going to form the companies
Microsoft.com
Google.com
and a few others, who wants in on the deal?

Quote:

Originally Posted by Babagirls

sure, count me in. although, i have no fuckin clue what you can do with a domain called "google"..heh, sounds like a disease or something. oh well, I'll take a chance & go in with ya anyways.

I want in too!

Let's use "google.com" to sell freeze dried ice cream! We are going to be rich!

DK · 11-26-2005, 02:51 PM

This Thread Needs an Orly!

SmokeyTheBear · 11-26-2005, 03:01 PM

Quote:

Originally Posted by DK

This Thread Needs an Orly!

dig420 · 11-26-2005, 03:05 PM

Every time I see somebody knocking GK I just think 'hater'.

Go ahead and tell us how you would do it so much better if only - IF ONLY - you had been smart enough to be in Gary's position in the first place.

AlienQ - BANNED FOR LIFE · 11-26-2005, 03:23 PM

I am pretty damn sure I could get SEX.COM Pulling 600K a month profit within 4 months.

Cohens biz model was 100% correct.

I like Gary, he is kool but Cohens business model was better.

DaddyHalbucks · 11-26-2005, 03:30 PM

Interesting info. Thanks.

09-28-2005, 08:20 AM	#1
GeorgeK Confirmed User Join Date: Dec 2003 Location: Toronto, Canada Posts: 423	sex.com $11.4 million domain sale fails -- lawsuit Just noticed this story via Google News: http://www.philly.com/mld/inquirer/n...a/12759624.htm (if it asks you to register, go to http://news.google.com/ and search for sex.com -- clicking the story should get you in without registering) According to the lawsuit, filed yesterday, Sex.com signed an $11.4 million deal last month with a Boston domain company to acquire the Internet address www.sex.com. As part of the deal, Sex.com alleged that it made a $500,000 deposit to Web site broker Domain Name Acquisition Group L.L.C., the defendant in the case. The civil complaint did not say why the deal fell apart but alleged that Domain Name engaged in "repeated untruths regarding the domain name Sex.Com, about other competing offers for the domain name Sex.Com, and various other material and relevant exaggerations and untruths." $11.4 million would seem a bit low.... __________________ I buy good domain names. Send lists to George (at) LOFFS.com

09-28-2005, 08:28 AM	#2
pradaboy sell me your banners Industry Role: Join Date: Dec 2003 Location: on the tubes Posts: 12,931	Haha that sounds like sex.com allright __________________ Media Buyer - Sell me your traffic! FREE to register domains... Better than 99% of the crap sold here!

09-28-2005, 08:37 AM	#4
GeorgeK Confirmed User Join Date: Dec 2003 Location: Toronto, Canada Posts: 423	Yes, Elvis. It must have been a company (in Philadelphia) formed specifically for this transaction. The Boston company appears to have been brokering it. This would seem to explain why Gary Kremen's firm isn't a party to the lawsuit, according to the story. __________________ I buy good domain names. Send lists to George (at) LOFFS.com

09-28-2005, 08:58 AM	#14
Ace-wtf Confirmed User Join Date: Jun 2005 Location: rolling for CASH Posts: 2,983	monkey business __________________ Don't miss out on the new HYPE!!! icq: 226370630

09-28-2005, 09:05 AM	#15
MrIzzz If u touch it, I will cum Join Date: Sep 2003 Location: long island Posts: 22,923	wow what a scam __________________ WHO WANTS TO PLAY GRAB-ASS?

09-28-2005, 08:33 AM	#3
ElvisManson Looking California Industry Role: Join Date: Feb 2001 Posts: 5,476	am I understanding this correctly? sex.com is the name of a company that was in the process of acquiring the domain sex.com?

09-28-2005, 08:40 AM	#7
CheneyRumsfeld Confirmed User Join Date: Sep 2004 Posts: 1,341	I am going to form the companies Microsoft.com Google.com and a few others, who wants in on the deal?

09-28-2005, 08:45 AM	#11
viper12047 Registered User Join Date: May 2005 Posts: 22

09-28-2005, 08:53 AM	#13
Drake Hello world! Industry Role: Join Date: Mar 2003 Posts: 12,508	lol 12345

09-28-2005, 09:12 AM	#17
Mr. Hollywood So Fucking Banned Join Date: Aug 2005 Posts: 47	$11.4 million for the best domain in the business. WTF

09-28-2005, 09:13 AM	#18
linuxguy Registered User Join Date: Sep 2005 Posts: 62	this is funny ;)

09-28-2005, 09:15 AM	#19
EroticySteve Confirmed User Join Date: Mar 2005 Location: The Sunshine State Posts: 4,365	My head feels as thick and confused after reading that as the first time I watched Fight Club. __________________ You deserve to make more money. I'll help you do that. Our affiliates earn up to $3/email or $107/sale email steve <at> eroticy.com - icq 290153464

09-28-2005, 09:33 AM	#20
Trent Edison Too lazy to set a custom title Join Date: Jun 2003 Location: Freeport 7 Posts: 6,132	OMG, sex.com spambot-free adult webmasters boards, it could be true... __________________

09-28-2005, 09:35 AM	#21
hova Traffillionaire Industry Role: Join Date: Jan 2002 Location: ICQ:209371571 Posts: 22,430	that's an interesting and complicated situation __________________ http://traffillions.com/ Sign up and get lifetime revshare on your traffic

09-28-2005, 09:38 AM	#22
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	11 million... Guess the domain doesn't make as much as everyone thinks. __________________ ~TheDoc - ICQ7765825 It's all disambiguation

09-28-2005, 09:42 AM	#23
Rui web Join Date: Dec 2001 Location: On icq: 85-483-060 Posts: 9,533	lol...I wonder how he couldn't saw this coming... its clear the guy behind this has more money than brains lol

09-28-2005, 10:05 AM	#24
GeorgeK Confirmed User Join Date: Dec 2003 Location: Toronto, Canada Posts: 423	http://www.duluthsuperior.com/mld/du...s/12763766.htm is a mirror of the complete original article, but doesn't seem to require a registration. Or, just use Google News: http://news.google.com/news?hl=en&q=...UTF-8&filter=0 __________________ I buy good domain names. Send lists to George (at) LOFFS.com

09-28-2005, 10:11 AM	#25
BradShaw Confirmed User Join Date: Oct 2001 Location: KB's trailer Posts: 7,840	Whose your daddy. __________________ Sig too big http://www.gofuckyourself.com/gfy_faqs.html Want to use a large banner in your sig??? Contact Eric about getting on as an advertiser - eric AT adult.com

09-28-2005, 10:21 AM	#28
iBanker Confirmed User Join Date: Dec 2004 Location: San Diego, moving to Portland. Posts: 2,758	I am trying to look up the purchasing company in this transaction in regards to their date of incorporation but am having a hard time finding it. Anyone have any luck? __________________ www.JasonandAlex.com Christopher's ICQ: 268-843-170

09-28-2005, 10:26 AM	#29
LiveDose Show Yer Tits! Industry Role: Join Date: Feb 2002 Location: Somewhere Out there... Posts: 25,793	That name's got bad karma attached to it! __________________ Scammer Alert: acer19 acer [email protected] [email protected] Money stolen using PayPal

09-28-2005, 10:30 AM	#31
GeorgeK Confirmed User Join Date: Dec 2003 Location: Toronto, Canada Posts: 423	iBanker: I found it by searching the State of Delaware: https://sos-res.state.de.us/tin/controller (search for sex.com) Entity Details THIS IS NOT A STATEMENT OF GOOD STANDING File Number: 4015566 Incorporation Date / Formation Date: 08/12/2005 (mm/dd/yyyy) Entity Name: SEX.COM INC. Entity Kind: CORPORATION Entity Type: GENERAL Residency: DOMESTIC State: DE REGISTERED AGENT INFORMATION Name: REGISTERED OFFICE SERVICE COMPANY Address: 203 NE FRONT STREET, SUITE 101 City: MILFORD County: KENT State: DE Postal Code: 19963 Phone: __________________ I buy good domain names. Send lists to George (at) LOFFS.com

09-28-2005, 10:51 AM	#32
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	If any of the major players are interested in acquiring Sex.com contact me. I spoke to Gary about various deal structures (just before this other company took out an option that didn't come through) and can structure a deal that wil be very workable. [email protected] __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

09-28-2005, 03:20 PM	#33
GeorgeK Confirmed User Join Date: Dec 2003 Location: Toronto, Canada Posts: 423	Some additional details from XBIZ at: http://www.xbiz.com/news_piece.php?id=10542 Gary said that Deal Jam still has an option on the domain name, but it's expiring soon. Would be interesting to know what the exercise price of that option is (i.e. Deal Jam would have presumably tried to flip the domain, to make a profit equal to the final price minus the exercise price, and also minus whatever the option itself cost). If someone has a PACER login, it might be a way to read the entire Statement of Claim. __________________ I buy good domain names. Send lists to George (at) LOFFS.com

09-28-2005, 03:26 PM	#35
Webby Too lazy to set a custom title Join Date: Oct 2002 Location: Far far away - as possible Posts: 14,956	Too damned funny!!! __________________ XXX TLD's - Another mosquito to swat.

09-28-2005, 03:29 PM	#36
RogerV Banned! Join Date: Jul 2002 Posts: 12,591	I would have thought it would sell for more.. wonder how much traffic it gets now

09-28-2005, 03:55 PM	#40
Choker Confirmed User Industry Role: Join Date: Apr 2001 Location: Orlando Posts: 9,024	75k typeins, redirect them to a paying paysite at 3 to 4 cents a click. one $200 a month server is all you need. No staff, no marketing, nothing . Mill a year in income after expenses. From there it's just a matter of how much you are willing to pay for 1 mill a year income. 10 mill would get you a 10% return on your income. Little risk as this domain should always get this many tpe ins a day forever. There is no shortage of paysites that would buy this redirected traffic at 3 to 4 cents a click. If Gary had done this model instead of the clusterfuck of a network he made, he would be on easy street right now. __________________ ICQ me lets make a deal 116894466 Need dating, cam, or tube traffic? I got it.http://http://www.chokertraffic.com The Original http://www.chokertraffic.com/ Premium country pop-unders from $1.50 per k. I challenge you to compare this traffic to any other brokers. http://www.chokertraffic.com/public/tabs.php?t=o

10-03-2005, 11:26 AM	#42
imaginax Confirmed User Join Date: Jun 2002 Posts: 463	Is this a sig spot thread or a dead thread? __________________ imaginax - Design is Art ICQ: 279-723-701

11-26-2005, 02:51 PM	#46
DK Confirmed User Join Date: Nov 2001 Location: Escazu' Costa Rica Posts: 1,273	This Thread Needs an Orly! __________________ skype: romeoblu

11-26-2005, 03:05 PM	#48
dig420 Confirmed User Industry Role: Join Date: May 2001 Posts: 9,240	Every time I see somebody knocking GK I just think 'hater'. Go ahead and tell us how you would do it so much better if only - IF ONLY - you had been smart enough to be in Gary's position in the first place.

11-26-2005, 03:23 PM	#49
AlienQ - BANNED FOR LIFE best designer on GFY Join Date: Mar 2003 Location: IALIEN.COM - High Definition Video and Photographic Productions -ICQ 78943384 Posts: 30,307	I am pretty damn sure I could get SEX.COM Pulling 600K a month profit within 4 months. Cohens biz model was 100% correct. I like Gary, he is kool but Cohens business model was better. __________________ NAKED HOSTING FTW!11 I'm On The INSANE PLAN $9.95/mo! \| The Alien Blog Adult News Worth Reading Updated Daily \| Content For Sale! 641 PICS 216 MINUTES OF VIDEO $350.00 \|ICQ: 78943384 \|

11-26-2005, 03:30 PM	#50
DaddyHalbucks A freakin' legend! Industry Role: Join Date: Feb 2004 Location: Las Vegas, Nevada USA Posts: 18,976	Interesting info. Thanks. __________________ Boner Money