Sex.com seeks new master of domain

Sex.com,often touted as one of the most valuable Internet domain names, is due to head to the auction block next week.

DOM Partners LLC, a New Jersey lender that backed a 2006 purchase of the domain name for a reported $14 million US, is foreclosing on the Internet property, and is due to auction it on March 18 at New York law firm Windels Marx Lane & Mittendorf LLP, according to legal notices.

Bidding for the Internet property, the tumultuous past of which includes several lawsuits and two books, is due to start at $1 million US.

The auctions of simple domain names are seen as rare opportunities for Internet entrepreneurs.

An auction for the http://www.pizza.com domain name in 2008 attracted bids above $2.5 million US.

But if it is true that sex sells, sex.com may be the most valuable domain name in the world. At one point, the website was making at least $15,000 US a day, according to a 2008 book, The Sex.com Chronicles, by attorney Charles Carreon, who has represented a former owner of the site.

In January 2006, Escom LLC acquired the domain name from Gary Kremen, founder of dating website Match.com and chief executive of Grant Media. Kremen registered the sex.com domain name in 1994.

A press statement announcing the 2006 sale said it was "believed to be among the most significant domain sale transactions in history." Terms of that deal were not disclosed, but it has since been reported that the deal was worth about $14 million US.

DOM Partners’ loan to Escom for the deal has been in default for over a year.

Auctioneer Richard Maltz, is running the sale, said Monday there was considerable interest in sex.com.

"We don’t know who’s serious and who’s not, but prospective bidders need a $1 million US certified cheque. It should be interesting."