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I was wrong, Famous Four bosses WERE kicked out

Kevin Murphy, August 9, 2018, 10:43:03 (UTC), Domain Registries

Famous Four Media’s portfolio of gTLDs is under new management after an investor rebellion, contrary to what I speculated earlier this week.

FFM’s former stable, which includes the likes of .men and .science, is now being managed by a company calling itself GRS Domains, but this new company has absolutely nothing to do with FFM’s former management.

That’s according to Robert Maroney, founder of Connecticut-based Engineers Gate Investments, which is a shareholder of ultimate portfolio owner Domain Venture Partners.

Maroney got in touch with DI yesterday to explain some of what has recently happened to the ownership and management of the 16 high-volume new gTLDs.

Back in June I speculated based on the quite limited available information that FFM might be bankrupt.

On Tuesday, after GRS Domains announced a relaunch and a rejection of its previous volume-heavy, spam-friendly business plan, I speculated based on slightly more information that management had repurchased the TLD assets after investors forced it into administration.

I was wrong on both counts, according to Maroney. What actually happened is more akin to an investor takeover.

Maroney said he “engineered” the ouster of FFM and its two shareholders/managers, Iain Roache and Geir Rasmussen, after Roache attempted to close down DVP.

DVP is basically a collection of private and institutional investors (brought in by Roache and others) from around the world which, based on the available evidence, have little or no connection to the domain name industry.

It’s a matter of public record that each gTLD contract is owned by a distinct Gibraltar-based shell company — dot Bid Limited owns the ICANN rights to run .bid for example — and that Domain Venture Partners owns these companies.

I’ve previously reported that Famous Four was also owned by DVP, but Maroney said that this was never the case. It was owned 80-20 by Roache and Rasmussen and contracted by DVP to manage the 16 gTLDs.

The affiliated registrar AlpNames, which has been responsible for a very large portion of registrations in the portfolio, had the same ownership structure as FFM and was never directly connected to DVP, Maroney said.

Following a court battle, GRS Domains has replaced FFM as the registry manager.

GRS is owned by DVP, and is currently being managed by court-appointed administrator Edgar Lavarello, a Gibraltar-based accountant at PricewaterhouseCoopers.

Maroney did not want to get into the detailed specifics about what caused the investor revolt, but did say that shareholders were unhappy with how FFM was managing the portfolio.

Its low-price, high-volume strategy had caused its TLDs to become the destinations of choice for spammers and other abusive registrants.

But the court case was brought after Roache attempted to break up DVP, restructure ownership of the 16 individual registries, and “escape the regulation of Gibraltar”, Maroney said.

“Roache wanted to shut down DVP in a way we considered to be unlawful,” he said.

He said DVP shareholders felt Roache’s moves were “inappropriate and unlawful”, which is what caused him to “engineer”, via fellow investor Christina Mattin, DVP being placed into administration.

I have seen no independent evidence that Roache acted or attempted to act unlawfully. The court document I’ve seen appointing Lavarello as administrator contains no finding of wrongdoing by anyone.

The upshot of all this is that the group of TLDs formerly known as Famous Four Media is now GRS Domains — Global Registry Services Ltd — and that Lavarello is currently in charge.

I imagine the company will want to find permanent management at some point, but Maroney did not want to talk about that.

In the meantime, GRS has already made moves to become more transparent and to engage more with the rest of the industry.

Maroney said, and I have independently confirmed, that he was at the ICANN meeting in Panama recently, meeting senior industry figures. Famous Four executives have not been known to attend ICANN meetings or industry events in the past.

GRS has told registrars it intends to have a formal presence at ICANN 63 in Barcelona also.

The company will shortly terminate all of its promotional pricing and introduce a flat $9.98 registry fee, which is very likely to affect its volumes and reduce spamming activity over the next year or so.

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Comments (4)

  1. Snoopy says:

    Sounds like enormous drops coming based on that pricing change?

  2. Jay Daley says:

    I’m totally lost on the ownership structure – can you draw a diagram?

    • Kevin Murphy says:

      Each TLD belongs to a shell company. DVP owns the shell companies.

      GRS manages the TLDs. DVP owns GRS.

  3. JS says:

    The documents on http://nic.win/resources.html are still branded Famous Four Media

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