Its like the horror movie the reanimator where a mad scientist wants to get even with the world and prove their ideas to a disinterested public.
Richard Rosenblatt is MySpace founder who sold his web 2.0 empire to Rupert Murdoch’s News Corp for $580 million and immediately regretted it bigtime. His company Demand Media purchased Enom & Bulk Register, making him one of the top 4 domain name owners and brokers online. What does he want to do with this new portfolio of parked domain names sitting in purgatory collecting millions of dollars from hapless Adwords advertisers? Make a social media site! Yes, now when you type in undeveloped names such as handbrake.com or baseballplayer.com you can actually join a social network! Yes! I can’t wait to join myspace for parked names, it has to be more interesting than simply stare mindlessly at advertisements.
I talked to some domainers, and they said, ‘We own 300,000 domains, we make $20 million a year, we have just four employees and some servers in the Caymans.’ I thought, ‘If you can make that much doing nothing, what if we added some Web 2.0 sprinkle so that people would come back – user publishing tools, social networking? What if we built a platform where we could snap that into as many domains as we wanted?’ That’s when the lightning bolt hit me: You’d have a company that generates its own traffic, generates its own content, and monetizes itself. It would be the perfect lazy-man’s media company!”
Mr. Rosenblatt is a shrewd businessman, so im sure he will make money out of this deal. The small players, as usual, will get nothing and perhaps loose money on worthless advertising.