As Part of Zappos Deal, Amazon.com Now Owns Clothes.com

zappos
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
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