Dark Blue Sea and Go Daddy join forces

Dark Blue Sea logoDark Blue Sea, parent company of Fabulous.com, has entered into a five year sales agreement with Go Daddy to sell domain names from the Dark Blue Sea portfolio of over 400,000 domain names. The arrangement also allows for Go Daddy to become a growing and eventually major shareholder.

Reporting on the announcement in Whizzbang, they note this is a bargain price for Go Daddy “and a means for DBS to shore up its share registry with an informed partner.”

The performance targets agreed on mean Go Daddy agrees to sell 45,000 domain names over a five year period to exercise all their options. “If each domain is sold for an average of $US1,500 each this represents $US67.5 million in sales or $US13.5 million annually. Compare this to $AU32.67 million ($US30.31) in total revenues for 2007 and you can see that this agreement is likely to have a huge impact on DBS’s future results,” continues Whizzbang.

Whizzbang speculates on the effect of the revenue split and what effect different options could have to both Go Daddy and Dark Blue Sea. And also asks if this is an exclusive deal with Go Daddy, which is not mentioned.

The original post on Whizzbang is available here.