Seattle based Marchex has announced an acquisition of some 100,000 domain names for a record $164,2 million.
Nasdaq quoted Marchex, which defines itself as a "provider of technology-based merchant services that facilitate and drive growth in online transactions", claims to have sealed an agreement to acquire certain assets of Name Development Ltd. for $164.2 million, including $155.2 million in cash.
The assets are a large amount of domain names, estimated at over 100,000, which are claimed to have directed more than 17 million unique visitors to commercial sites in October 2004 alone.
Name Development Ltd. is thought to represent domains owned by Ultimate Search, a specialist pay per click company. The company's founder, Yun Ye, pioneered the use of freshly expired domain names to drive traffic to commercial sites. In return, those sites pay Ultimate Search a commission for each visitor sent. Yun Ye is said to have earned a multi-million annual income from his pay per click activities.
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