Legal News

Sex.com domain goes up for auction

By (Breaking Legal News)

Sex.com, one of the most valuable Internet domain names, will go up for auction next week after the previous owner defaulted on its debts.

Escom LLC paid a reported $14 million for the Web site in 2006. But the company failed to repay debt owed to DOM Partners LLC, the New Jersey-based lender that helped finance the deal.

As a result, sex.com will be sold "as is" in the equivalent of a foreclosure sale, according to a letter from DOM Partners' lawyers that was made public Tuesday. The auction is set for March 18 in New York, and bidders are required to appear with a certified check for $1 million to participate.

Richard Maltz, an auctioneer at Maltz Auctions who is overseeing the sale, said there has been a "good amount of interest" in sex.com. But he did not say how much the Web site could sell for.

"It is a very unique property," he said. "It will be an incredible opportunity for someone."

Indeed, sex.com generated $15,000 a day in revenue at one point, according to Charles Carreon, an attorney who wrote about the Web site's legal travails in his book "The Sex.com Chronicles."

By way of comparison, the domain name www.pizza.com reportedly sold for more than $2.5 million at an auction in 2008.

Full post as published by Breaking Legal News on March 09, 2010 (boomark / email).