Gambling.com Gives Owner $1.8m Loss On Sale

It is not always the case that it is just a case of buy a domain name, wait a while, and sell it for a profit. The Financial Times today has a story on gambling.com that was sold recently by Media Corporation, an Aim-quoted advertising network and online gaming group, for $2.5m, or a $1.8m paper loss. The website currently serves as a portal to gambling sites.

According to the FT, “the company, once known as Xworks, reversed on to Aim in 2001 as The Gaming Corporation. It acquired Newbold, the owner of gambling.com, in 2005 for £10.5m in cash and shares. At the time the shares were trading at 14p.”

“But the following year the company became a victim of the US crackdown on online gaming. It changed its name again, to Media Corporation, ‘to reflect the fact that the company generates its entire operating profits from its portals and advertising businesses'”.

“The high sale price paid for gambling.com is a real confidence booster for the global domain name industry, and demonstrates the value companies are still prepared to place on their digital assets.”

The sale was welcomed by Media Corporation’s CEO Justin Drummond who said “the sale of Gambling.com brings a significant boost to the Group’s already substantial cash reserves; we have recently seen a number of exciting acquisition opportunities in the online gaming and online advertising space. The successful sale of www.gambling.com has given the Group more than adequate financial resources to pursue these acquisition opportunities aggressively.”

It is also thought to be a boost to the domain name aftermarket business.

“The high sale price paid for Gambling.com is a real confidence booster for the global domain name industry and demonstrates the value companies are still prepared to place on their digital assets,” said Liesbeth Mack-de-Boer, CSO at Sedo, commented.

For more information, see:
www.ft.com/cms/s/0/e0fb69b4-71e8-11e0-9adf-00144feabdc0.html
www.mediacorpplc.com/Pages/Press.aspx?id=4199210