Marchex takes a big hit from product change at Yahoo.

Back in August I wrote about potential exposure Marchex has to the Yahoo-Microsoft search deal, particularly around Yahoo’s paid inclusion service. Marchex grossed about $2 million from the product in the second quarter of this year, but the product’s future was up in the air with the search deal.

Now that Yahoo has announced the end of paid inclusion at the end of the year, look for Marchex’s revenue and earnings to take a hit.

Research firm Benchmark is lowering its 2010 revenue estimate for Marchex by $10 million due to the product cancellation. Benchmark questions Marchex’s sustainability.

The product was low margin for Marchex, but was a key component of packages it sold to small businesses.
Shares of Marchex are up 22 cents to $4.97 in early trading today.

[Disclosure: I own shares in a number of domain name stocks, including Marchex.]

© DomainNameWire.com 2009.

Review and rate domain name parking companies at Parking Judge.

Related posts:

1. Yahoo-Microsoft Deal Could Cost Marchex $8M Revenue
2. Will Marchex Dump Yahoo for Google?
3. Marchex Reduces Dependency on Yahoo

Marchex takes a big hit from product change at Yahoo.

Back in August I wrote about potential exposure Marchex has to the Yahoo-Microsoft search deal, particularly around Yahoo’s paid inclusion service. Marchex grossed about $2 million from the product in the second quarter of this year, but the product’s future was up in the air with the search deal.

Now that Yahoo has announced the end of paid inclusion at the end of the year, look for Marchex’s revenue and earnings to take a hit.

Research firm Benchmark is lowering its 2010 revenue estimate for Marchex by $10 million due to the product cancellation. Benchmark questions Marchex’s sustainability.

The product was low margin for Marchex, but was a key component of packages it sold to small businesses.
Shares of Marchex are up 22 cents to $4.97 in early trading today.

[Disclosure: I own shares in a number of domain name stocks, including Marchex.]

© DomainNameWire.com 2009.

Review and rate domain name parking companies at Parking Judge.

Related posts:

1. Yahoo-Microsoft Deal Could Cost Marchex $8M Revenue
2. Will Marchex Dump Yahoo for Google?
3. Marchex Reduces Dependency on Yahoo

DDOS to blame for problems during auction yesterday.

Sedo’s outage during the .de domain name auction yesterday was not due to intense bidding activity, but was actually a distributed denial of service (DDOS) attack, reports the company.

In a statement released today, Sedo wrote:

Due to a malicious attempt to disrupt our services, Sedo suffered from two different distributed denial of service (DDOS) attacks which temporarily caused the Sedo and GreatDomains.com websites to be slow or irresponsive between 17:55 and 20:15 CET on October, 22nd 2009 (11:55 and 2:15 PM EDT). Together with its protection provider, Sedo successfully fought both attacks and our websites are again fully operational. While the GreatDomains auction has concluded, to provide equal opportunities for all parties interested of the 1, 2 & 3-Character .de Pre-Auction, Sedo has extended the auction and attempted to contact and notify all bidders of the extended schedule.

Yesterday Sedo’s message on its web site during the outage and in tweets suggested that the downtime was due to intense bidding activity for .de domain names. Although bidding was indeed intense, there appears to have been more at play.

© DomainNameWire.com 2009.

Review and rate domain name parking companies at Parking Judge.

Related posts:

1. Sedo hit by DDoS Attack, Adds New Listing Feature
2. Denial-of-Service Attacks hit PPC Services
3. First GreatDomains Auction Off to Solid Start