Live Current Media, Inc. (LIVC.OB) announced today that it has signed a letter of intent with Domain Strategies to develop www.Karate.com, a domain name owed by Live Current. Domain Strategies – a leading Internet development company – and Live Current will form a new company, Newco, to build, manage, and monetize Karate.com. The board of directors of Newco will have equal representation, but Domain Strategies will have primary operational responsibilities, including site design, employment and vendors, customer acquisition, and potential strategic partners. Live Current will contribute the domain name Karate.com to Newco and will receive a 50% interest in the new company, plus a distribution and liquidation preference of $500,000.
Domain Strategies is also investing $250,000 in cash to the venture, demonstrating its faith in the potential of the domain. Rob Monster, chairman of Domain Strategies, said, “Live Current has assembled an outstanding portfolio of development-worthy domains. We know from past experience with properties like Healthcare.com that there is a large opportunity for value-creation by developing domains into operating companies. We look forward to partnering with Live Current on Karate.com as well as future joint productions which tap the raw potential of their portfolio.”
Geoffrey Hampson, Chief Executive Officer of Live Current, commented, “We are very pleased to be entering into this partnership with Domain Strategies and Rob Monster, a proven developer of web properties. Live Current’s strategy is to prioritize building businesses around our top two domain names, www.perfume.com and www.cricket.com, and to seek alternative methods of monetizing the other 850 names in our portfolio. Our partnership with Domain Strategies is indicative of the value of these domain names and reinforces our belief that the top 30 domain names can be built into profitable businesses given the right management focus and resources.”
Live Current focuses on developing what the company calls a DestinationHub, a powerful domain name which provides effective ownership of a subject category, and which can be developed into a major Internet presence using outside resources.
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