When cousins Greg and Joe Balestra set out to build a national online candy store in 2009, they knew that a strong domain name would matter as much as sweet packaging or logistics. Their family business, Melville Candy, had already built trust in manufacturing, but they needed a name that could win online attention instantly.
That domain name was Candy.com: already owned by domain investor Rick Schwartz. For years, Schwartz had refused offers for his assets, waiting for deals that reflected both value and vision. The Balestras’ plan to build a direct-to-consumer candy marketplace offered something new: a real operating business behind the name.
A Deal that Blended Cash and Conviction
The agreement reached in June 2009 became one of the most talked-about domain name transactions of its time. Schwartz received $3 million in cash and an equity stake in the new Candy.com company.
The structure was deliberate. Instead of a clean sale, it gave Schwartz continuing ownership, roughly five percent at closing, later adjusted to about twelve percent through follow-on terms. The blend of cash and equity allowed the founders to conserve capital while aligning the seller with their success. Schwartz effectively became a quiet partner in the company he helped name.
The Long Game Pays Off
Over the next decade, the business evolved. Candy.com expanded into broader e-commerce categories, building out fulfillment capabilities for perishable goods and eventually rebranding under the name Green Rabbit. The company grew steadily, serving major retailers and consumer brands through temperature-controlled delivery systems.
In 2021, Green Rabbit sold the Candy.com domain for an undisclosed amount to an unnamed buyer, stating the proceeds would support its continued growth in cold chain logistics. While no financial terms were disclosed, CEO Greg Balestrieri emphasized the strategic rationale: the domainname had already delivered exponential value, and it was time to unlock its residual worth by transferring it to a non-competing acquirer who could benefit from the same brand value Candy.com once offered Green Rabbit.
“Candy.com is a major reason why we are where we are today. We acquired the domain in 2009 and it was worth every penny and more, creating exponential value for us. As our Green Rabbit business expanded and became our priority, it was time to leverage the candy.com domain’s value, and put it in the hands of a non-competitive acquirer that would get the same brand value from the domain name that we did.”
- Greg Balestrieri, CEO of Green Rabbit for Candy&Snack Today
In October 2023, Green Rabbit was acquired by Performance Food Group, a Fortune 500 distributor. The acquisition ended a fourteen-year run and triggered a liquidity event for early stakeholders.
Schwartz confirmed through his blog that his equity payout exceeded $7 million in the transaction. Combined with his earlier three million cash and about $1.7 million from prior share sales, his total proceeds crossed $11 million dollars. What began as a partial cash deal became one of the largest realized returns ever achieved from a domain name.
What the Candy.com Story Shows
The Candy.com deal remains a textbook example of how equity can transform a good sale into a generational outcome. Schwartz traded some immediate certainty for longer-term alignment, trusting that the right partners could turn a memorable domain into a lasting enterprise.
For founders, the case illustrates how creative deal structures can make high-value domain names attainable without overextending capital. For domain name owners, it proves that a well-chosen equity position can outperform any one-time sale when the operating company succeeds.
The Broader Message
Equity-based domain name transactions reward patience and clarity. They turn naming into a form of early investment, connecting digital ownership with enterprise growth. The Candy.com story shows that a single decision, to hold a share instead of only taking payment, can reshape financial outcomes for years to come.
Explore verified opportunities to connect with founders and structure creative equity deals at DomainsForEquity.com.