Live Current Media, a Canadian company which is in the business of developing, operating and monetizing premium domain names, has raised a little over $1 million through a private placement. The money comes from Live Current’s own management team and a couple of outside investors, and is expected to be the first part of a private funding which could total up to $2 million in the next 15 days.
Live Current, which changed its name from Communicate.com earlier this year, is a publicly traded company (OTCbb:LIVC). The investors paid 65 cents per unit, a premium of 38% to yesterday’s closing price of 40 cents.
The company acquired YCombinator startup Auctomatic in March 2008. A month after, it was time for a far bigger deal: it signed a $50 million deal to obtain the exclusive online rights to official content from the Indian Premier Cricket League. (Live Current owns Cricket.com and operates IPLT20.com, the official site for the league). When we reported on the deal, we wrote:
It is a pretty big commitment for Live Current Media, a domain-name company with revenues of $9 million last year and a net loss of $2 million. The Canadian company is basically betting its entire $51 million over-the-counter market cap on this deal.
And that was before the economic meltdown. Now, Live Current is being forced to sell up to six of its premium domain names, including Communicate.com, Brazil.com, Vietnam.com, Indonesia.com, Malaysia.com, Canadian.com and GreatBritain.com, hoping to fetch a combined total of $6 million to $10 million. It could turn into a fire sale or worse, deadpool tag for the company, unless they can convince some outside investors that they’re able to turn the ship around.
Most of Live Current’s revenue, which was nearly $2 million for the quarter ended September 30, comes from its Perfume.com operation. But with a gross profit of $352,435 and expenses of $2,343,285, those numbers aren’t going to do the trick.
Live Current CEO and Chairman, Geoffrey Hampson, said in a statement:
“This financing, in addition to the expected proceeds of the previously announced sale of up to six non-core domain names, is consistent with management’s strategy to ensure that sufficient cash resources are available to meet our obligations through the end of 2009 while minimizing dilution for existing investors.”
Only time will tell if the cash resources are sufficient enough to keep the company afloat.
(Hat tip to DomainNameWire)
Blame it on the bad economy. Best of luck getting through the tough times.
Mwuahahaha, domain squatter bastards
FYI investing in strategic keyphrase natural language domains is not squatting. its a common sense investment. duh.
its called “cybersleuthing. ”
sorry you and many other ignorant people missed the boat and are still lost on the subject. i cant belive some people believe that cybersquatting even exists and is a thriving business. people need to study the domain scripture of logic before they speak.
ScriptureLocator.com – word up
WHOOP WHOOP FRUITCAKE ALERT!
Just a quick clarification. LIVC isn’t selling Canadian.com as my original article suggested. Instead the 6th name it is trying to sell is Communicate.com, the former company name.
Duh, I put down 7 domains instead of 6. Thanks for the heads up, corrected the post.
I thought this kind of companies was the ones that downturns were supposed to wipe out
testing testing
Have they considered relocating to Barney Frank’s district and registering as a bank? What about a phone call to Ron Gettelfinger?
“Live Current Media, a Canadian company which is in the business of developing, operating and monetizing premium domain names,”
So,their entrire business model is based on cyber-squatting? Pathetic…
FYI: The official meaning of “cybersquatting” is when you register and monetize a “trademarked” word or phrase domain name.(i.e., “ChevyCars.com”, “PardeeHomes.com”. On the other hand, if you were fortunate enough to register a “generic” domain that cannot be legally trademarked by anyone, less they become an ilegal monopoly (i.e., the words “cars.com”, “homes.com”, etc) you are a smart business.
awesome collection of names.
huge travel companies in those spheres or the countries tourist board should buy these names, they could recoup the money in no time, properly developed and marketed