Online Firm Takes Step Back From Domain Names

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As part of Oversee.net’s shift away from the domain-name business and into online performance marketing, the downtown L.A. company has sold two domain-name auction platforms.

The company announced Feb. 8 that it had sold SnapNames and Moniker to Luxemburg Internet company KeyDrive S.A. Terms of the deal were not disclosed.

SnapNames, which Oversee acquired in 2007, operates auctions of expired and deleted domain names, while Moniker, which Oversee picked up in 2008, is a domain-name auction and registration business.

Oversee will send customers to SnapNames and Moniker for domain-name sales and auctions, but will no longer own and operate those divisions, said Scott Morrow, the company’s co-chief executive.

Last fall, Oversee announced it cut 13 percent of staff as part of a strategy to refocus on marketing and monetizing websites. The plan was to expand its customer base and open up new revenue streams, while continuing to offer some of its original services.

Morrow said the sales of SnapNames and Moniker will help the company continue to evolve.

“As we started to shift our strategic focus toward a much bigger market, Moniker and SnapNames really didn’t fit into that strategic vision,” he said. “This allows us to broaden our customer focus beyond the domain space and into the broader advertiser ecosystem.”

Performance marketing includes search engine optimization, e-mail blasts and advertising placement on websites.

As part of Oversee’s realignment, Jeff Kupietzky, the company’s former chief executive, left his post for personal reasons in August. In his place, Morrow and Debra Domeyer were appointed co-presidents.

The board recently promoted Morrow and Domeyer to co-chief executives.

Domeyer said it was a sign that the board is happy with their new strategy.

“We see our promotion as a vote of confidence from the board regarding the new vision and strategic initiatives that we’ve identified here at Oversee,” she said.

The company, which has 114 employees, is hiring to support its new performance-marketing initiatives. Morrow said the company’s new direction will open it up to higher growth than would have been achievable in the domain business.

“We’re absolutely investing in this business for growth,” he said. “Performance marketing is a much bigger market. Moving in that direction will allow us to fish in deeper waters.”

Ad Advantage

Ad technology company OpenX has reached profitability for the first full quarter thanks to more publishers and advertisers using its live ad-exchange platform.

The privately owned Pasadena startup announced positive cash flow and net income for the fourth quarter.

Tim Cadogan, OpenX’s chief executive, said the company has seen an uptick in activity on its ad-exchange platform. OpenX now handles more than 200 billion ad transactions each month.

“We’ve seen a lot more adoption and a lot more scale,” Cadogan said.

Reaching quarterly profitability is an important milestone for a startup company. Cadogan is also predicting that 2012 will be OpenX’s first full year of profitability.

The company sells software that helps web publishers keep track of their ad sales. Some of its customers include Chicago daily deal company Groupon Inc. and New York stock market news website TheStreet.com.

It also operates the OpenX Market, a real-time exchange where ad space can be bought or sold.

OpenX has partnered with ad agencies such as Dentsu Inc. in Tokyo and Orange-France Telecom to create ad exchanges there. Cadogan said those partnerships are still small but are expected to contribute more to the business over the next year.

“They’re going well, but I classify them as nascent,” he said. “We’re optimistic that it will be a bigger part of our growth story moving forward.”

He said that the company will focus on ramping up sales and its marketing teams. It currently has about 140 employees, up from about 100 in June. He’ll also consider an initial public offering.

“The plan has always been to create something for the long term,” he said. “I look at an IPO as another way to raise capital to continue the journey.”

Science Experiment

Science Inc., a Santa Monica technology studio founded my Myspace veteran Mike Jones, has named the first three companies it has helped develop and fund. And it seems Jones is keeping things in the Myspace family.

The first company that Science has developed is Eventup, an online rental system for commercial and privately owned properties. The site, which was founded by Tony Adam, former Myspace director of online marketing, lists rentable venues such as the home from the HBO show “Entourage” and the former residence of Jim Morrison.

Science has also funded and co-founded a startup from Sean Percival, another former Myspace executive. Called Wittlebee, the startup charges a subscription to send customers a personalized box of children’s clothes every month.

Science is also funding MeUndies.com, an e-commerce site that has launched a line of high-end underwear for men and women.