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I'm glad they got crushed, this title should read "Domain squatter nets $100 million a year scamming, until Google closed the loophole". Nationalistic pride aside, there is nothing about this company worth keeping around. It sucks for the employees who didn't know the big picture, but certainly not for the CEO or the VC, they knew they were playing with fire.



The company's business model had nothing to do with domain squatting. It is enough to have a single domain to do huge amounts arbitrage. Or should I say "it was enough". :)

By the way, there still is a number of smaller companies doing Google->Yahoo arbitrage with Yahoo's quiet approval.


It would be interesting to see what happened to that if Google bought Yahoo.


They could start arbitraging into second tier networks, like FindWhat or LookSmart. But it's unlikely that this will actually work in practice. The bids in those networks are too low.

Another way of doing it (and that's how some arbitragers are structuring it even now) is to have two or more separate companies, with different billing addresses and access respective Google accounts using different IPs.


granted, but arbitrage is a wonderful feature of capitalism. It shows you exactly where big inefficiencies are.




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