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06|20|2007 08:26 am EDT

Tucows sells 2500 domains for 3 million

by Frank Michlick in Categories: Domain Sales, News, Registrars

TORONTO, June 19 /CNW/ – Tucows Inc. (AMEX:TCX, TSX:TC) today announced that it has sold approximately 2,500 domain names from its portfolio of domainnames for US$3.0 million in a private transaction. Tucows may earn up to an additional US$1.2 million if certain performance criteria are met. Any additional payment will be payable in one year’s time.

“This sale indicates some of the latent value of our domain name portfolio,” said Elliot Noss, President and CEO of Tucows Inc. “As I have stated in the past, we will continue to be opportunistic with our domain name assets. While, this transaction does contain revenue-generating assets, we felt that the sale was appropriate. This transaction also provides us with an opportunity to step back and evaluate some operating possibilities. Accordingly, while we now believe our cash flow from operations for 2007 will likely be at the top end of the US$10 million to US$12 million range, we do not expect to be discussing any possible change in guidance until our next conference call at the earliest.”

The Tucows stock actually jumped up by about $0.30 cents at around the same time as both news items were release (this one and Tucows offering premium domains via their reseller channel) were released. The buyer is unknown.

[Press Release]

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  • http://SCAMARTISTS what ever

    Tucows, being a registrar has no business aquiring domain names. This is a conflict of interest. Expired domains, registered through Tucows resellers, such as Ipower.com, are supposed to be released back into the public domain after expiring. Tucows is holding onto those domains, & parking them, & sharing the parking revenue with partners, & then ultimately selling the domains. This is a scam!

  • http://i.m.fm/ Frank Michlick

    Many registrars follow this practice. I’m not saying it’s right or wrong, but Tucows is not the only registrar doing this.

  • John

    Did anybody ever find out who the buyer was?

  • http://www.thedomainnamesauction.com Karan Goyal

    If the domain is let to expire, it looses it’s value atleast as far as SE’s are concerned. So, instead of letting it go into PendingDelete, it’s better to sell it and monetize it. WHo the buyer is a different story. It’s like Best Buy or Circuit City Employees trying to be a customer for a good deal the company is offering.