To: Mohan Marette who wrote (96335 ) 2/9/1999 12:05:00 PM From: William F. Wager, Jr. Respond to of 176387
SMARTMONEY.COM: Dell's Newest Domain Name... By Joshua Albertson Smartmoney.com NEW YORK (Dow Jones)--Online stock message boards were abuzz this weekend over Dell Computer Corp.'s (DELL) registration of the domain name Dellauction.com, but, despite the new address, the company maintains that it is not preparing to become the Web's newest mass-merchandise auctioneer. "I can tell you there are no plans to become eBay (EBAY) and auction off Furbys anytime soon," says David Dix, Dell's global Internet public relations manager. Still, the door is open for other Internet commerce possibilities, Dix says. "We are just looking aggressively at new ways to leverage our brand in electronic commerce in ways it makes sense to do so." According to Network Solutions' InterNIC Registration Services database, records for the Dellauction.com domain were updated last Tuesday. Infonautics Inc.'s (INFO) CompanySleuth.com, which first reported the Dellauction.com registration late last week, lists more than 20 domains registered by Dell. Many of the sites, including Dellfactory.com and E-Dell.com, are inactive. Analysts speculate that Dell might use an auction site to unload excess corporate merchandise. The company already sells refurbished computers through factory outlets in Texas, according to Ashok Kumar of Piper Jaffray. "What they could possibly end up doing is aggregating these units and auctioning them off to the highest bidder," he says. But Lou Mazzucchelli of Gerard Klauer Mattison says that strategy might jeopardize the strength of the Dell brand. "It would sort of degrade the perceived value of some of their stuff," he says. On the other hand, Dell might have registered the domain name to keep it out of the hands of other e-commerce hopefuls, Mazzucchelli says. "They might want to grab it so nobody else can grab it." (For more on Dell's e-commerce strategy, see "Could Dell Join the Portal Wars?')