Some are going to immediately scoff at the price as merely an accounting price, as NetQuote.com was a fully functioning business and not just a domain name. But if you go over the SEC filings of Bankrate.com‘s recent purchases you’ll see that that of the $92 million paid for the company,” Approximately $92.0 million was recorded as intangible assets consisting of Internet domain name for $40.9 million, customer relationships for $46.0 million, and developed technology for $5.1 million.”. So officially, the $40.9 million allocated for the domain crushes the old record price of $13 million paid for Sex.com.
There were several other names purchased by Bankrate that now make the top ten according to their allocation of costs for the domain name as a percentage of purchase price.
CreditCards.com $26.5 Million
CarInsurancequotes.com $7.5 million
Bargaineering.com $2.7 million
So now brings up the big question. Can a domain with a business behind it be counted as the highest price paid for a domain or does there need to be new rules. Sex.com had good revenue as well and officially was a business and a domain name.
Although I’m no accountant, I assume there is a reason they put certain value on the domain name as an asset but what keeps a company trying to use the purchase as publicity by saying they paid 99% of the purchase price for the domain and the rest for the business? Well, other than the IRS.