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Demand Media to invest up to $75m in content

Kevin Murphy, October 12, 2010, Domain Registrars

Demand Media plans to invest between $50 million and $75 million in content in 2011, according to the company’s latest IPO filing.

The company, which owns number two registrar eNom, has also disclosed that it plans to list itself on the New York Stock Exchange under the ticker symbol DMD.

Under “Use of Proceeds” in its latest amended S-1 registration form (huge HTML file), filed today with the Securities and Exchange Commission, Demand says:

We currently anticipate that our aggregate investments in content during the year ending December 31, 2011 will range from $50 million to $75 million.

Demand Media’s main business is the advertising it sells against the thousands of freelance articles it publishes every day. It had about $102 million in current assets on its balance sheet on June 30 this year.

Previous text talking about about using the proceeds of the IPO to “acquire or invest in complementary technologies, solutions or businesses” has been dropped.

The amended S-1 spends quite a lot of time talking about a reverse stock split that it is carrying out prior to its public offering.

4Domains customers transferred to Internet.bs

Kevin Murphy, October 7, 2010, Domain Registrars

Customers from the insolvent registrar 4Domains have had their domains transferred to Bahamas-based Internet.bs, only a few days after ICANN told 4Domains it was shutting them down.

In a notice posted last night, ICANN said that 4Domains had nominated Internet.bs as its registrar of choice for refugee customers, which likely speeded up the transaction.

ICANN’s letter telling 4Domains it was losing its accreditation, alleging multiple breaches of its contract, was sent September 30, last Thursday.

A 4Domains customer contacted me earlier this week to say she had received a renewal notice from Internet.bs (which she had never heard of) as early as Sunday, October 3.

That’s possibly the fastest turnaround between a registrar losing its accreditation and the new registrar taking over to date.

ICANN tells former 4Domains customers worried about fraud that any emails they receive from Internet.bs should link only to internet.bs or internetbs.net.

Customers should probably also be aware that their domains are now handled by a registrar subject to Bahamas law. 4Domains was US-based.

ICANN cans broke registrar

Kevin Murphy, October 1, 2010, Domain Registrars

4Domains.com has lost its registrar accreditation after ICANN decided it had gone insolvent.

ICANN has alleged numerous other violations of the Registrar Accreditation Agreement, but told the registrar that its insolvency allows it terminate the accreditation with immediate effect.

ICANN’s letter to 4Domains (pdf) describes a company unable not only to pay its roughly $6,110 in due ICANN fees, but also to fund its registry accounts, service its customers and pay its staff.

From this, ICANN has concluded that the registrar is insolvent, and has terminated its accreditation.

4Domains is acting in manner that endangers the stability and operational integrity of the Internet, which is a separate grounds to support ICANN’s termination of the 4Domains RAA.

ICANN said 4Domains was also failing to escrow its registrant data, “due to an inability of the 4Domains programmer to resolve the escrow deposit issues”.

But it has this week supplied ICANN with an electronic copy of its customer database, so it appears that most registrants will be protected should their domains be transferred to another registrar.

The company has been told it may now nominate another registrar to take over its accounts in bulk.

4Domains was accredited in 2000, making it one of the first registrars to go live. According to DotAndCo.net, it has about 25,000 active registrations in five gTLDs.

Is Ella Koon the hottest Go Daddy Girl yet?

Kevin Murphy, September 23, 2010, Domain Registrars

Ella Koon Go Daddy has added yet another spokesmodel to its small army of Go Daddy Girls.

Ella Koon is a Hong Kong-based singer/actress/model described by Go Daddy CEO Bob Parsons thus: “She’s smart, she’s talented and she knows how to leverage the Internet.”

Those are the three most important qualities in any woman, as I’m sure you’ll agree.

Koon’s primary responsibilities will be promoting the registrar’s brand specifically to the Asian market by looking pretty and wearing a tight T-shirt.

eNom to crack down on fake pharma sites

Kevin Murphy, September 17, 2010, Domain Registrars

Demand Media is to tighten security at its domain registrar arm, eNom, after bad press blighted its recent IPO announcement.

The company has signed a deal with fake pharmacy watchdog LegitScript, following allegations that eNom sometimes turns a blind eye to illegal activity on its customers’ domains.

The news emerged in the company’s amended S-1 registration statement (large HTML file), filed with the US Securities and Exchange Commission yesterday. New text reads:

We recently entered into an agreement with LegitScript, LLC, an Internet pharmacy verification and monitoring service recognized by the National Association of Boards of Pharmacy, to assist us in identifying customers who are violating our terms of service by operating online pharmacies in violation of U.S. state or federal law.

LegitScript will provide eNom with a regularly updated list of domain names selling fake pharma, so the registrar can more efficiently turn them off. The companies have also agreed to work together on research into illegal online pharmacies.

Surrounding text has also been modified to clarify that eNom is not required, under ICANN rules, to turn off domains that are being used to conduct illegal activity.

This is a bit of a PR win for the small security outfits KnuJon and HostExploit, firms which had used the occasion of Demand’s S-1 filing to give eNom a good kicking in the tech and financial press.

HostExploit reported last month that eNom was statistically the “worst” registrar as far as illegal content goes.

ICANN executives are reportedly going to be hauled to Washington DC at the end of the month to explain the problem of fake pharma to the White House.

Registries and registrars have also been invited, and I’d be surprised if eNom is not among them.