Executives of Melville Candy Corp. bought the domain name, and plan to launch an e-commerce site at Candy.com July 1. They say this is the second highest price paid for a domain this year, after Toys `R` Us` purchase of Toys.com for $5.1 million.
Katie Evans , Managing Editor, International Research
Candy.com will go live as an online candy store July 1, following the purchase of the domain name by two executives of Melville Candy Corp. They bought Candy.com this month for $3 million, in what they say is the second highest price paid for a domain this year, after Toys `R` Us` purchase of Toys.com for $5.1 million.
The buyers are Joe Melville, CEO of Massachusetts-based Melville Candy Corp., and company vice president Greg Balestrieri. They have created a company called G&J; Holdings LLC that will operate Candy.com, with Balestrieri serving as president.
They purchased Candy.com from a company Rick Schwartz, who sells domain names through eRealEstate.com. Schwartz wrote on his blog that he will also get a royalty payment equal to 2% of sales for 15 years, which, he says, could double the value of the deal.
Candy.com will sell 5,000 items and will be able to provide expedited shipping from its home base in Massachusetts, and through distributors in Virginia, California and Canada, G&J; Holdings says.
Domain registrar Moniker Online Services LLC, a subsidiary of Oversee.net, handled the escrow for the deal, and Boston law firm Trinity Law Group, LLC provided legal services, G&J; says.