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Correct, presumably the domain name is a capital asset that preserves its basis, so the real cost is the opportunity cost of not spending the money elsewhere. W
by evanweaver 8y ago
Correct, presumably the domain name is a capital asset that preserves its basis, so the real cost is the opportunity cost of not spending the money elsewhere. We don't really know this cost.
- sqrt17 8y ago> presumably the domain name is a capital asset that preserves its basis the domain name doesn't have an inherent value or basis, it's (presumably) unlikely that the next Cover Inc would be willing the same amount within a short timeframe of them wanting to disinvest from the name. Illiquid assets have to pay for liquidity in such cases.
- onetimemanytime 8y agoHistory--so far--shows that good, .com, names do keep their value. Granted you may overpay and cannot sell at the bought price but cover.com is a name that can be used by many types of businesses. So if they go kaput, they have an asset :)
- iooi 8y ago*The VCs/creditors would have an asset.