As Part of Zappos Deal, Amazon.com Now Owns Clothes.com
Amazon.com acquired Zappos for $928 million in July. As part of the acquisition, Amazon.com also owns the domain name Clothes.com. Zappos originally bought the domain name from Idealab for $4.9 million. These details were discussed in the SEC filing of the acquisition.
Below is a statement from the SEC filing:
In May 2008, we acquired the Clothes.com internet domain name from Idealab. The domain name was recognized as a purchased intangible asset with a useful life of 20 years. The entire purchase price of $4.9 million was assigned to the price of the domain name intangible asset and will be amortized on a straight-line basis over its remaining estimated useful life.
At the $4.9 million transaction Clothes.com was the second biggest domain name sale in 2008. The first biggest was Fund.com which was at $10 million. Clothes.com forwards to Zappos.com’s clothing section.
[via TechCrunch]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry