Having dabbled here myself, let me be the first to say that domain name speculation is not for the faint of heart. As far as creating a company around it, why the heck not…

The Web site www.flashgames.com has no staff, spends no money on marketing and despite its name, offers no games. All it offers is a list of links to other game sites.

Yet, it earns revenue of more than $150,000 a year selling online ads.
 MySpace.com chairman Richard Rosenblatt announced last week that it has raised $120 million from investors to build a new company, Demand Media Inc., centered on generic domain names like these. The venture has already acquired 150,000 domain names — including flashgames.com — and plans to aggressively acquire more. But, conscious of the limitations of these bare-bones sites, it plans to add some low-cost content in hopes of making the business even stronger.

“We will be taking billboards and turning them into content Web sites,” says Rosenblatt, who ran MySpace.com’s parent company, Intermix Media Inc., and negotiated its sale to News Corp. for more than $650 million last year. Rosenblatt, a serial Internet entrepreneur, is co-founding Demand Media with Shawn Colo, a principal at Spectrum Equity Investors. His backers include Spectrum, Oak Investment Partners and Generation Partners…. Source: Baltimore Sun