Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MARCHEX INC | d429381d8k.htm |
| EX-99.2 - PRESS RELEASE - MARCHEX INC | d429381dex992.htm |
| EX-99.5 - MARCHEX HISTORICAL TOP 500 DOMAIN SALES - MARCHEX INC | d429381dex995.htm |
| EX-99.1 - EARNINGS RELEASE - MARCHEX INC | d429381dex991.htm |
| EX-99.3 - MARCHEX SUMMARY PRESENTATION - MARCHEX INC | d429381dex993.htm |
 Spin-Off
Transaction & Archeo Summary
Exhibit 99.4
November 2012 |
 www.marchex.com
2
SAFE HARBOR STATEMENT
This presentation contains forward-looking statements that involve substantial risks and
uncertainties. All statements, other than statements of historical facts, included in
this presentation regarding our strategy, future operations, future financial
position, future revenues, other financial guidance, acquisitions, projected costs,
prospects, plans and objectives of management are forward-looking statements. In
addition, there are certain risks and uncertainties relating to our announced spin-off
transaction which contemplates a separation of our mobile and call advertising
business and our domain and advertising marketplace business, including, but not
limited to, the impact and possible disruption to our operations, the timing and
certainty of completing the transaction, the high costs in connection with the spin-off
which we would not be able to recoup if the spin-off is not consummated, the expectation
that the spin- off will be tax-free, revenue and growth expectations for the
two independent companies following the spin-off, unanticipated developments that
may delay or negatively impact the spin-off, and the ability of each business to
operate as an independent entity upon completion of the spin-off. We may not actually
achieve the plans, intentions or expectations disclosed in our forward-looking
statements and you should not place undue reliance on our forward-looking
statements. Actual results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking statements we make.
There are a number of important factors that could cause Marchex's actual results to differ
materially from those indicated by such forward-looking statements which are described
in the "Risk Factors" section of our most recent periodic report and
registration statement filed with the Securities and Exchange Commission. All of the
information provided in this presentation is as of today’s date and we undertake
no duty to update the information provided herein. |
 www.marchex.com
3
Transaction Overview
Marchex intends to pursue the separation of its business into two
distinct, publicly-traded entities: Marchex and Archeo
Archeo shares will be distributed to existing Marchex shareholders
in a tax-free spin-off transaction on a pro rata basis
Archeo will operate independently with a new management team
Subject to Board approval over the coming months |
 Rationale for
Company Separation Marchex
Pure play mobile advertising
company focused on pay for
call advertising and analytics
Archeo
Premium domain and advertising
marketplace that enables for the
buying, selling and development of
digital properties and ad inventory
Allow both Marchex and Archeo to
increase strategic focus, build on
unique assets and accelerate growth
www.marchex.com
4 |
 www.marchex.com
5
Archeo’s Assets –
An Opportunity to Unlock Value
200,000+ best-in-class domains with very
meaningful value
Significant domain inventory provides a long-term
sales window
Unique, premium advertising marketplace with multiple
growth catalysts
Potential to build out more proprietary sites
Rich Assets + Ability to Monetize = Strategic Flexibility |
 www.marchex.com
6
Archeo Business Opportunity
Resource the Domain Marketplace
Opportunistically buy domain names to support our
marketplace
Sell more domains by accessing new sales channels
Selectively develop digital properties to add to our
advertising marketplace
Products
Growth Catalysts
Expand Advertising Marketplace
Innovative new products and technology
Expand on the existing premium publisher partnerships
Leverage proprietary digital properties to increase
advertising sales
Domain
Marketplace
(200,000+
domains)
Premium
Advertising
Marketplace
$$
2
1 |
 www.marchex.com
7
The Domain Aftermarket is a Big Business
Source: http://www.domaining.com/topsales/
Total value for Top-500 traditional Domain
Names sold is ~$300 MM, an average of
more than $600k per domain`
1 |
 www.marchex.com
8
With one dedicated sales resource, Marchex has generated more than $30 million in
domain sales, representing less than 5% of the total domain portfolio
Archeo Domain Marketplace (as Marchex)
has Successfully Monetized Domains with
Limited Resources
2012 Marchex Historical Domain sales for the 9 months ended 9/30/12 are $5.4 MM.
See list of Marchex Historical Top 500 sales and current owned domains for more
detail. Selected Sales
Marchex Historical Annual Domain Sales
$4.4 MM
$4.9 MM
$6.8 MM
$9.5 MM
2008
2009
2010
2011 |
 www.marchex.com
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To date, all Marchex historical domain
sales have been through the
Negotiated sales channel
With additional resources, Archeo will
accelerate Negotiated sales
Additional opportunities include:
–
Accessing the Buy-Now Market for
incremental revenue opportunity
–
Entering the Auctions, External Transfer
and Broker sales channels
Archeo will Accelerate Domain Sales by
Accessing New Sales Channels
*SEDO Q2 2012 Domain Report
7%
External
Transfer
42%
Buy Now
31%
Negotiated
15%
Auctions
5%
Broker
1 |
 www.marchex.com
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Leverage selected premium domains for development internally and
through
partnership
Innovate with design and content to create valuable consumer experiences
Use proprietary data and analytics to inform priorities for growth
Potential Candidates for Development
Archeo Domain Marketplace will Selectively
Develop
Digital Properties to Increase Value
Large sample of current owned Archeo domains is available at www.marchex.com/archeo
1
Business & Finance
Corporations.com
AnnualReport.com
CurrencyExchange.com
Debts/Insurance
Debts.com
Refinancing.com
InsuranceDeals.com
Miscellaneous
Cuisine.com
Toddler.com
Beijing.com
Real Estate
HomeInspections.com
HomeMovers.com
HomeLenders.com
Spanish
Mujer.com
Deportes.com
Salud.com
Home & Remodeling
Remodeling.com
Locksmiths.com
Theft.com |
 www.marchex.com
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Archeo will Expand its Current Advertising
Marketplace Capabilities
Optimize existing business:
Continue to place national and local pay-per-click
advertisers on premium publishers
Proprietary Publishing Opportunities
Education
BestColleges.com
50States.com
Local
Yellow.com
AreaConnect.com
Technology
Finance
Refinancing.com
Debts.com
Current Premium Publisher Partner Verticals
Human
Resources
Business &
Finance
2 |
 www.marchex.com
12
Archeo will Grow its Advertising Marketplace
2
National Advertisers
Local Advertisers
New
Distribution:
Strategically
add new publishers, verticals and
mobile distribution
Proprietary
Traffic:
Extend
advertising sales to Archeo digital
properties
New
Ad
Types:
Accelerate
product offerings, including mobile
initiatives |
 www.marchex.com
13
People
Initial team already onboard for the transition from Marchex
Will invest in experienced management
Will continue to build out sales and engineering teams
Technology
Develop additional tools necessary to deliver on the domain
marketplace strategy
Accelerate advertising product innovation to develop new offerings
for our customers
Continue to derive proprietary data and analytics to inform priorities
for growth
What’s to Come for Archeo |
 Reference
Material |
 www.marchex.com
15
Resources
available
at
www.marchex.com/archeo
Marchex Summary
Industry Top 500 Domain Sales
Marchex Historical Top 500 Domain Sales
Archeo Sample Current Domains
Additional Information |