The headline of the day so far has to be the announcement of the purchase of LasVegas.com by Vegas.com in a structured sale that required a $12 million initial installment followed by monthly payments of $83,000/month for the first 36 months, steadily increasing at several points over time to $208,000/month until the year 2040 for a total of $90 million.
You can read the SEC filing and see Note 7 (p13) which outlines the payment schedule from the 2005 purchase through 2040.
The story first broke on the @GeorgeKirikos Twitter account when he announced the followng:
I just discovered one of the largest domain name transactions in history. Get ready for a tweetstorm!
— George Kirikos (@GeorgeKirikos) November 6, 2015
Under the agreement, Vegas.com may terminate the sale and forfeit the domain after June 30, 2016, and following the 132 initial monthly payments fails to make or decides to stop making the $208,000 monthly payment they’ll lose LasVegas.com and we all know that Vegas is not in the habit of losing money.
TheDomains.com has a closer look at the terms.
The two sites are similar in appearance but Vegas.com bills itself as “The Official Vegas Travel Site” while “LasVegas.com…is the official destination marketing organization of Las Vegas and the surrounding Clark County Area” according to its website.
It’s important to note that the sale involves the domain name only and that the businesses operating at each site are not directly related, but both domains currently use Vegas.com name servers.
So will they operate each site separately?
Assuming the sale is completed, whether or not they will continue as two distinct properties remains to be seen but many years ago while working for a well-known luggage and gift store in New Orleans I learned a valuable lesson.
Be Your Best Competition
In business you’re going to face plenty of competition and there’s an advantage to creating something similar in the marketplace with like offerings under a different name.
If you’re willing to develop, this can easily be applied online with domain names for a lot less money than my employer was doing it for back in the early 80’s.
For years we’ve heard “What happens in Vegas, stays in Vegas” and with today’s announcement it appears that it’ll stay that way for a long time.