The domain name business is the land grab of the 21st Century. There's big money to be made in the buying and selling of domain names. That's according to James Altucher, managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds.
Altucher
believes there's big money in domain names and he's watching companies which are stockpiling them. Among his favorites are VeriSign (VRSN), the monopoly which issues all .com and .net domain names. After all, "mortage.com" sold for $242,000 last year - misspelling and all. Altucher calls this "the land grab of the 21st century."
Altucher also
likes Marchex (MCHX), which owns some 200,000 addresses including domains for every zip code in the country. Is there money to be had? Altucher says a hedge fund manager he knows has been buying coming names for 10 years, and has already turned down $3 million for one of them.
Source [SeekingAlpha]
