It's official, Snapnames has been acquired by Los Angeles based Oversee .. And while it may seem like the rumored 25mm sale was struck, purely on the EBITDA that Snapnames.com generates, I have a hunch this is all about what can be done with the industry’s leading automated auction platform and clearing house.
Oversee is behind the well received Domainfest conference and tradeshow. What do you suppose they could do if they plugged the Snapnames auction into their tradeshow and others? Then how about if they ran that auction with 4 lanes in a Las Vegas hotel and did the auction/show to coincide with Winter CES when everyone in technology attends? Think about what Christies, Barret-Jackson, and Sothebys have done with auctions over the years. Then think about how important great domain names are (are going to be in future).
What leading auction houses like Snapnames and Moniker understand is that the sale does not close when a name clears the block. Buyers pay premiums on the front end hoping to amortize their purchase over a decade or more. Names have to get quickly and efficiently transfered on the back-end, transfer authcodes provided, names unlocked, nameservers set. Seems simple enough but you’d be surprised how acrimonious and unwieldy outbound transfers are from certain registrars.
Snap was the first to bend over backward to simplify that process and provide a streamlined front end interface for bidding. The market has rewarded them with higher unreserved sale prices for names which cross their block. Now that block is owned by Oversee.
Congratulations to the buyer and seller. Posted early cuz Jay scooped me at Domaintools ;)