This article originally appeared in The Age (http://www.theage.com.au/) on 12.01.99 and was located at http://www.theage.com.au/breaking/9912/01/A10209-1999Dec1.shtml and has been mirrored here on the chance they don't retain archives for long periods. Thanks to slashdot for originally carrying the link to The Age.Firm pays $US7.5m for business.com domain name
Los Angeles: A Houston entrepreneur sold the Internet domain name business.com for a record $US7.5 million ($A11.4 million) in a deal announced today that highlights the skyrocketing pricetags of prime Web addresses.
Marc Ostrofsky sold the name to eCompanies, the Santa Monica-based business development firm founded by former Disney Internet chief Jake Winebaum and Earthlink founder Sky Dayton, the company said.
Ostrofsky purchased the business.com name from a British Internet service provider three years ago for $US150,000 ($A229,600) - a price considered stratospheric at the time.
'Everyone thought I was a fool. People thought I was going out of my mind,' Ostrofsky said. Ostrofsky also will become an adviser to business.com.
Winebaum said the easy-to-remember name was worth the price because it will save eCompanies millions of dollars in advertising costs.
'It's a choice piece of real estate and we've got a great service that we're building to go behind the brand,' said Winebaum.
'If you look at what companies are spending to build a brand, I think it's a prudent investment.'
Winebaum said he plans to use the name for a new business devoted to helping other businesses tap into the world of electronic commerce.
The $US7.5 million ($A11.4 million) price for business.com was the highest yet for a domain name, said Jeff Tinsley, chief executive of Greatdomains.com, an auction site for domain names.
The record may not last for long. Greatdomains recently became agent for the name America.com. A bid greater than $US7.5 million ($A11.4 million) has already been tendered and rejected by the seller, Tinsley said.
'I think that's just the beginning of what's going to come. These names are going to command a significant price,' he said.