Vivo bought Vivo.com for $2.1 million eight years ago

Recently, the editor stumbled upon an interesting discovery while browsing foreign domain forums. In 2016, Vivo Mobile Company made headlines by acquiring Vivo.com for $2.1 million (approximately 14.42 million RMB). This news created quite a buzz in both the domain and smartphone industries. George Kirikos tweeted about it, prompting discussions on why Vivo would spend $2.1 million to purchase this domain name.

Many investors pointed out that similar domain names had been sold for six-figure sums. Domains like Veda.com, Logo.com, and Mojo.com reportedly sold for prices ranging from $100,000 to $500,000. So why did Vivo.com command a valuation of $2.1 million?

There are several reasons behind this price tag. Firstly, the company selling Vivo.com is Real Networks. They are a software company with over 1,000 employees and last quarter's revenue amounted to $31.1 million. Their current market capitalization stands at 188 billion RMB, with total cash and short-term investments exceeding $80 million, and a domain portfolio including real.com, listen.com, and rbn.com. It can be inferred that they regularly receive offers for domain names, but selling isn't their top priority. Acquiring a domain name from a well-established company likely required a seemingly inflated figure, providing them with enough incentive to consider a sale.

The second factor is the buyer of this domain name, Vivo. As one of the top ten global smartphone manufacturers, Vivo is a subsidiary of BBK Electronics Corporation. With a reported 21-year history, over 17,000 employees, and more than 10 hectares of factory land, BBK Electronics Corporation is a significant player in the industry. Vivo alone boasts over 10,000 employees according to LinkedIn and has collaborated with Marvel on sponsoring "Captain America: Civil War." Given their global sponsorship deals, paying $2.1 million for a globally recognized domain is a small cost for them.

Lastly, in 2014, Xiaomi acquired Mi.com as part of its international expansion efforts. Prior to acquiring Vivo.com, Vivo operated its international website on VivoGlobal.com and its Chinese website on Vivo.cn.

Vivo.com was registered in April 1998, while Vivo.cn was registered in October 2010. Both domain names are four-letter domains and hold significant value. In hindsight, the acquisition price for Vivo.com doesn't seem expensive, considering Vivo is a Chinese enterprise with a considerable market share in the global smartphone industry.