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TLDH raises $5 million from gTLD auctions

Kevin Murphy, October 25, 2013, 12:54:45 (UTC), Domain Registries

Top Level Domain Holdings made almost $5 million by losing auctions for the .lawyer and .website gTLDs this week, according to the company.

The London-listed company told the markets today that it has added £2.97 million ($4.81 million) to its coffers as a result of the auctions, in which Radix won .website and Donuts won .lawyer.

The number is net of the 4% cut taken by Innovative, which conducted the auctions, and the two $65,000 refunds TLDH will receive from ICANN when it withdraws the applications.

Some portion of the $4.8 million TLDH will have received from Donuts, where .lawyer was a two-horse race.

Radix’s winning bid for .website will have been split evenly between TLDH and Donuts.

At least one of these TLDs seems to have sold for significantly more than the average private auction selling price, which was $1.33 million after the first 14 Innovative auctions.

Innovative has managed auctions for 18 strings, but we don’t know the total price of the latest four.

The .website and .lawyer deals means TLDH now has £10.1 million ($16.3 million) in cash reserves, according to a company press release.

It still has 43 contested applications, however. On a $16 million budget — quite a lot less than some of its portfolio rivals — the company is going to have to make some smart tactical moves to maximize its gTLD portfolio.

“Our strategy remains to best monetise those applications where we see least value so that we can maximise our ability to acquire those names in which we see greatest value,” chairman Fred Krueger said in the press release.

It still has stakes in 25 uncontested gTLDs.

NOTE: An earlier version of this story contained inaccurate statements — failing to take into account that .website was a three-way contest — about the average selling price of new gTLDs at auction.

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