Bluestone’s primary objectives
- Acquire domains at a reasonable or undervalued price when compared to its current or potential revenue streams (as assessed by us)
- Optimise the performance of the domain to maximise its income potential, thereby shortening its payback period
- When the value creation potential of the domain has been maximised, exit at a price that represents a reasonable capital return for the domain.
Bluestone’s approach is to apply rigorous evaluation criteria to the purchase of domain portfolios in order to enhance its strategic position, strengthen its financial profile, augment its points of defensibility and increase shareholder value and where applicable, maximise investor returns. Bluestone focuses on portfolio acquisition opportunities that represent a combination of the following characteristics:
- Under-leveraged and under-commercialised assets
- Critical mass of transaction volumes, advertisers, traffic, revenue and profits or a combination thereof
- Earnings defensibility
- Revenue growth potential
Bluestone’s investment policy has lead to a combination of both traffic style and generic domain names in order to diversity the portfolio across various asset classes. Bluestone conducts comprehensive due diligence on all domain name portfolios it acquires to ensure the financial metrics and risk profile of each portfolio is acceptable based on our experience.
The business process operates as follows:
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