03|09|2008 11:19 pm EDT
Dark Blue Sea, parent company of Fabulous.com have entered into a five year agreement with Godaddy to sell domain names from the Dark Blue Sea portfolio through Godaddy’s sales channels. The agreement also puts Godaddy in a position to become a major shareholder in DBS.
As part of the agreement, Godaddy will be delivering improvements on “the way secondary market domains are sold through their network”.Â In return DBS is allowing up to 6.5 million shares to be exercised at $ .65 per share.Â 1.6 million of the options can be exercised immediately and the remainder over the course of the contract given that certain sales targets are met.Â Godaddy would be expected to have completed 45,000 domain sales to be able to exercise all options.
DBS expects the agreement to significantly increase the rate of after-market domain sales from their portfolio.Â Details on the options and specifics of the agreement can be found in the filings on the Austrlian Stock Exchange and can be seen on finance.yahoo.com.au (search for dbs.ax).