LasVegas.com

LasVegas.com was purchased in 2005 by VEGAS.com, LLC, which sought to link the two domains to ensure that both search phrases directed Las Vegas-based online traffic to the tourist agency. The big $90 million sale guarantees that this will go down in history as one of the most expensive website purchases.

Stephens Media, the previous owner of the domain, consented to a contract that included an initial payment of $12 million. According to the financial papers, LasVegas.com was sold for a whopping $90 million in total payments. The payment plan will be completed over 35 years, from 2005 to 2040.

VEGAS.com, LLC signed a purchase agreement for LasVegas.com in June 2005. The deal stipulated a $12,000,000 one-time payment upon agreement completion, followed by monthly payments of about $83,000 for 36 months, $125,000 for the next 60 months, and then $208,000 for the next 36 months.

According to the provisions of the agreement, VEGAS.com, LLC may terminate the agreement and forfeit the domain name after June 30, 2016, following the 132 first monthly payments. If VEGAS.com, LLC does not terminate the agreement, they will continue to make monthly payments of about $208,000 until June 30, 2040, at which point the seller will transfer the domain name to VEGAS.com, LLC at no additional expense or payment.

Using a discount rate of 6.25 percent in June 2005, the present value of the future payment commitments was calculated to be roughly $12,264,000. The initial $12,000,000 payment has been capitalized and will be amortized over the 35-year life of the agreement.

The present value of the future purchase obligation of about $12,264,000 was capitalized and is being amortized beginning in July 2005 and ending in June 2016, the period during which VEGAS.com, LLC is legally required to continue paying payments under the agreement. Following June 2016, the agreement will be renewed on a month-to-month basis through June 30, 2040, with all payments reported as an expense.

Price: $90 million