Sex Sells but Who is Buying?

As the demand for sex.com domain is continuously on the rise, a group of creditors are trying to their best to get the highest price for the bidding of the site. Some of the creditors has forced Escom, the previous owner of sex.com to go for bankruptcy last month for foreclosure of unpaid debts. Escom reportedly paid $14 million to buy the site.

The financier for Excom includes DOM partners, Washington Technology Associates (WTA), iEntertainment Inc. and AccountingMatters.com. It was DOM’s plan to sell the technology to the highest bidder and the auction was opposed by other financiers.

Mike Mann of WTA  estimated the value of sex.com is going to be around $50 million. However, domain name experts has said that sex.com is worth between $14 million and $18 million. The report also suggests that if the domain has been sold in auction, it may add only about $6 million, writes Anita Ramasastry, a FindLaw columnist. The huge gap between real worth of sex.com and actual result has prompted WTA and other creditors to reject the plan for auction and go for bankruptcy.

Due to the conflict among the creditors, Mann wanted to sell his stake of the domain name to animal right activist PETA. But, he wanted that the donation has to be in the form of $50 million tax deduction from the authorities. Although, the auction is delayed indefinitely, the speculation is that the sale for the domain name can fetch lot of money. Scott Matthews, a lawyer for DOM said there are huge interest for the domain name, but he is reluctant to say how many bidders were expected to take part in the auction.