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Verisign announces .net price increase

Verisign has just announced that prices for .net domains are going up again this coming February.

Announcing its second-quarter earnings, the company revealed plans to raise its registry fee from $7.46 to $8.20, effective February 1, 2017.

That’s the maximum 10% price hike it’s allowed to claim under its .net Registry Agreement with ICANN.

Raising .net prices has become a bit of an annual tradition with Verisign, one of the few gTLD registries to still have its prices regulated by ICANN.

The company had about 16.2 million .net domains under management at the last formal, published count in March. Its daily “domain base” has .net at 15.7 million names today.

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.web could already be a record-breaker as auction enters day two

Kevin Murphy, July 28, 2016, Domain Sales

It seems likely that .web has already smashed through the $41.5 million record sale price for a new gTLD at ICANN auction.

The auction, which kicked off properly at 1300 UTC yesterday, seems to have ended its first day of bidding at around 2300 UTC last night without a winner.

That suggests, based on the rules and how previous auctions have played out, that we’re probably already looking at high bids over $50 million.

The previous top price for a gTLD at ICANN auction was .shop, which sold to GMO for $41.5 million earlier this year.

The signs are that .web will go for more.

Be warned, this is mostly informed guesswork. I don’t know what the current bids are.

ICANN auctions work in rounds. In each round the minimum bid is either $1 (for round one) or the previous round’s maximum bid (for all subsequent rounds).

The maximum bid in each round is set by the auctioneer, who has broad discretion, based on the action at the time.

The range between minimum and maximum bids seems to get bigger in each passing round, based on previous auction results.

According to ICANN auction rules (pdf) each bidding round lasts 20 minutes and is immediately followed by a 20-minute recess.

This schedule is somewhat flexible. It could be slowed down or sped up with the consent of all bidders.

The .web auction was due to kick off at 1300 UTC yesterday, according to court papers, though it seems probable that round-one bids were accepted the previous night.

The first day’s bidding was due to end at 2330 UTC yesterday.

So that’s over 10 hours of bidding yesterday, which works out to about 15 rounds if they stuck to the 40-minute round schedule.

When .shop sold for $41.5 million, it did so in just 14 rounds, carried out in a single day.

The final round of that auction saw an acceptable bidding range of $36.8 million to $46 million — an almost $10 million spread.

So, if we can assume that there were at least 15 rounds in the .web auction yesterday and we can assume that the auctioneer is following a similar playbook to the .shop auction, the maximum bid when the auction paused overnight was likely well over $50 million.

By the time you read this, this guesswork could be moot anyway. I expect we’ll find out later today whether those assumptions were accurate. It seems unlikely that a third day’s bidding will be required.

The applicants for .web are NDC, Radix, Donuts, Schlund, Afilias, Google and Web.com. Vistaprint’s bid for .webs is also in the auction.

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M+M billings quadruple on China .vip surge

Minds + Machines this morning said that its billings increased to $8.05 million in the first half of 2016.

That’s a 300% increase on the comparable year-ago period, the company said in a preliminary statement to the markets.

It added that its domains under management grew from 217,200 at the end of June 2015 to 728,940 a year later.

While the statement did not elaborate on the reasons behind the growth, the recently launched .vip gTLD seems to be the main factor.

It went to general availability a little over two months ago and quickly topped 400,000 registrations.

Just a few weeks before the end of the reporting period, M+M said its billings and orders for .vip alone had already hit $5.5 million.

That’s due to interest from Chinese domain investors, who were courted by M+M during a conference in Beijing.

M+M will report its full interims on September 20.

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“Ditch .com!” government to tell Indians

The Indian government is to urge citizens to register .in domain names instead of .com, according to local reports.

The Economic Times reports today that the Ministry of Economy and IT is to launch a “massive advertising campaign aimed at companies, individuals and startups” promoting .in.

Rajiv Bansal, MEIT joint secretary, is reported as saying the campaign will play up to nationalist sentiments

The government wants to grow .in from about 2.1 million domains to 3 million domains by March next year, it said.

Prices could come down to the $2 to $3 range, the paper said.

The campaign is due to start in a month or so, it was reported.

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Donuts denied! .web auction to go ahead today

A California judge had denied Donuts’ eleventh-hour attempt to delay today’s .web gTLD auction.

In a ruling late yesterday, Judge Percy Anderson rejected the company’s request for an emergency temporary restraining order preventing ICANN from selling off the premium gTLD.

This means the auction is pretty much certain to go ahead starting at 1300 UTC — that’s 6am local time for ICANN — today.

Donuts had sought the TRO because it claims ICANN failed in its duty to investigate whether rival bidder Nu Dot Co is now backed by a new big-money controlling party.

Its ultimate goal appears to have been to somehow force .web to private settlement, where all the unsuccessful applicants could get a multi-million dollar pay-off.

Anderson dismissed the request for a multitude of largely technical legal reasons surrounding the timing of Donuts’ request.

He said that, had ICANN not already filed its opposition to the TRO, he would have ruled against Donuts simply for failure to formally serve ICANN in a timely fashion.

But on the merits, he ruled that there was not a strong likelihood of Donuts winning a full trial, due to the statements of two NDC executives, who swore on oath there had been no change to the company’s ownership or management.

Anderson wrote (pdf):

Based on the strength of ICANN’s evidence submitted in opposition to the Application for TRO, and the weakness of Plaintiff’s efforts to enforce vague terms contained in the ICANN bylaws and Applicant Guidebook, the Court concludes that Plaintiff has failed to establish that it is likely to succeed on the merits, raise serious issues, or show that the balance of hardships tips sharply in its favor on its breach of contract, breach of the implied covenant of good faith and fair dealing, and negligence claims. Moreover, because the results of the auction could be unwound, Plaintiff has not met its burden to establish that it will suffer irreparable harm in the absence of the preliminary injunctive relief it seeks. The Court additionally concludes that the public interest does not favor the postponement of the auction.

He did give Donuts leave to amend its request, but given that the auction is due to start today before California office/court hours, that courtesy seems moot.

It’s likely that by the end of the day we will know how much the .web, and possibly .webs, domains fetched. We’re certainly looking at eight figures for .web, in my view.

Some have guessed prices in the ballpark of $50 million, based on the $41.5 million paid for .shop earlier this year.

It seems at least seven of the eight applicants in the auction will be bidding blind, strategically speaking.

Circumstantial evidence suggests that NDC does indeed have one or more secret sugar daddies supporting its bid, insulated from public view by NDC’s corporate structure.

The applicants for .web are NDC, Radix, Donuts, Schlund, Afilias, Google and Web.com. Vistaprint’s bid for .webs is also in the auction.

ICANN currently has over $100 million in a bank account, segregated from its operating funds, from previous last-resort auctions.

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