Bad Letter LLLL .com spends $62.4 million on another company

In the world of domaining, letters are somehow attributed a value related to how common they are.

Using this concept, common letters are more valuable in combinations of letters, such as LLL .com’s and LLLL .com’s.

Some crazy folks even consider LLLLL .com’s as “coinage” but with 11,881,376 combinations that’s a rather inflated coin.

Most domainers agree that letters such as Q, Y, J, Z, X and sometimes even V, W and K are not the best quality letters.

Recently, a real world corporation by the name of IXYS spent $62.4 million dollars buying the entire stock of a major chipset manufacturer.

There are at least 2 bad letters in IXYS – X and Y – but the money behind speaks for itself.

In a statement from last December:

The terms of the agreement state that IXYS will acquire all of Zilog’s outstanding common shares for $3.5858 per share in cash, or approximately $62.4 million. The acquisition is subject to the approval of Zilog shareholders and other customary closing conditions. The transaction will be completed during the quarter ended March 31, 2010.

The acquisition has been completed as of February 18, according to this business wire:

IXYS Corporation (NASDAQ:IXYS) today announced the closing of its acquisition of Zilog, Inc. The closing of the acquisition followed the stockholders meeting of Zilog, Inc. on February 17, 2010, at which the acquisition was approved by the following vote: 12,635,022 shares were voted in favor; 11,565 shares were voted against; and 2,021 abstained. Zilog’s shares ceased trading at the end of today’s market session.

This serves as more proof that letter quality means nothing when it comes down to deciding on a corporate name.

When it comes down to letter quality, what is your valuation mantra?

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3 Responses to “Bad Letter LLLL .com spends $62.4 million on another company”
  1. Shane says:

    I’m one of the crazy people that LOVE 5L dot coms. There is a ton of junk 5Ls out there but a name that is easy to pronounce, difficult to misspell, and short make some of the best names on the web. If you want to create a brand you want to start neutral, not with a word that makes them think of something else. And I prefer the world mentally challenged

  2. Lucius "Guns" Fabrice says:

    Shane, the argument is not over 5-L’coms but rather, the perception that any combination from AAAAA to ZZZZZ has a fixed de facto value. The same applies to a lesser extent to 4-L’ coms and even lesser to 3-L’coms. Nobody said is not a good word 😀

  3. BullS says:

    My friend, it is all relative perception.

    Everybody is an expert in something and more over everybody is expert is Everything!!

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