Cars.com confirmed to be the largest domain sale in history :DomainGang
Cars.com confirmed to be the largest domain sale in history
Cars.com has been confirmed to have been the largest domain sale in history, with a staggering $872,320,000 dollar valuation.
In connection with our acquisition by Parent, we have an intangible asset with an indefinite life associated with the Cars.com trade name. This asset represented 34% of our total assets at December 31, 2016. The indefinite lived intangible asset is tested annually, or more often if circumstances dictate, for impairment and is written down to fair value as required. The estimate of fair value is determined using the “relief from royalty” methodology, which is a variation of the income approach.
The discount rate assumption is based on an assessment of the risk inherent in the projected future cash flows generated by the trade name intangible asset. The results of our 2016 annual impairment test of the indefinite lived intangible asset indicated the fair value exceeded its carrying value by more than 10%, and therefore, no impairment existed.
Although the trade name asset is not currently impaired, changes in future market rates or decreases in future cash flows and growth rates could result in an impairment charge in a future period.
Hopefully this puts closure to arguments on the value of the domain itself; the entire company was sold for $2.5 billion dollars.
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