Latest news of the domain name industry

Recent Posts

CentralNic to swell with $24m Instra buy

Kevin Murphy, December 8, 2015, Domain Registrars

CentralNic is set to grow revenue by almost three quarters by acquiring Australian registrar Instra for $23.7 million.

The acquisition is for AUD 33 million, AUD 30 million of which will be in cash.

CentralNic plans to raise £10 million ($15 million) with a share placement to help fund the deal.

“This acquisition will grow our current revenues by 70% and extend our retail capabilities to serve customers in the fast growing emerging markets, globally,” CEO Ben Crawford said in a statement to the markets.

Instra had revenue of AUD 14.8 million ($10.7 million) in its fiscal 2015, and was profitable.

CentralNic’s revenue for the first half of this year was £4.4 million ($6.8 million).

The deal makes CentralNic, which started life as a registry, a much larger player in the registrar market.

It acquired Internet.bs for $7.5 million a couple of years ago, which brought in $2.8 million of revenue in the first half of this year.

Instra offers 150 ccTLDs and all the gTLDs, according to CentralNic.

How one registrar allegedly dodges ICANN Compliance

Kevin Murphy, November 17, 2015, Domain Registrars

A Chinese registrar has been accused by ICANN of playing games to avoid complying with Whois policy.

In a breach notice from ICANN Compliance last week, Beijing-based 35 Technology is told that it has failed to verify Whois records as required by its accreditation agreement.

The domain in question was shoesbbalweb.com, which DomainTools’ archived screenshots show was once used to sell branded running shoes.

I understand that 35 is believed to have suspended the domain when ICANN first referred a Whois accuracy complaint to it.

It is then said to have un-suspended the domain, without any change to the Whois record, as soon as ICANN closed the complaint.

The breach notice (pdf) instructs 35 to:

Provide records and information demonstrating that 35 Technology took steps to verify and validate the Whois information of the domain name since 23 March 2015, or provide ICANN with an explanation why the domain name suspension was removed without verifying and validation Whois information

The switcheroo appears to have been brief enough that its suspended state was not recorded by DomainTools.

ICANN has a monitoring program, however, that randomly spot-checks previously complained-about domains for ongoing compliance.

The registrar, which does business at 35.com, is not tiny. It had over 450,000 domains under management, in legacy gTLDs and a handful of Chinese-script new gTLDs, at the last count.

It has until the end of the month to explain itself or risk termination.

Web.com just gave itself another reason to bid high for .web gTLD

Kevin Murphy, November 9, 2015, Domain Registrars

Registrar group Web.com is changing its stock market ticker symbol to WEB tomorrow, in another sign that it really, really wants to be identified with the string.

The switch from WWWW may indicate that the NASDAQ-listed company’s six rivals for the new gTLD .web have a fight — and a possible big payday — on their hands when .web finally goes to auction.

Web.com is competing with Nu Dot Co, Radix, Google, Donuts, Afilias and Schlund for the gTLD.

The company has already fiercely defended its “right” to .web, filing successful String Confusion Objections against .webs applicant Vistaprint.

Vistaprint subsequently filed an ICANN Independent Review Process complaint to appeal its SCO loss.

Last month, the IRP was won by ICANN, but the panel left the door open for ICANN to reconsider its decision.

The .web auction is not likely to go ahead until the Vistaprint issue is resolved.

If ICANN decides the two strings can be delegated separately, what I think is the last barrier to the .web auction going ahead disappears.

If not, then Vistaprint finds itself as the seventh contender in the auction, which may give it the impetus to carry on challenging the ruling.

ICANN’s board plans to discuss the issue at its next meeting, December 10.

Which way it leans will give an indication of how long it will be before .web goes to auction.

European privacy ruling could add to registrars’ costs

Kevin Murphy, November 6, 2015, Domain Registrars

European domain registrars say they are facing increased costs of doing business due to a recent court ruling on privacy protection.

As a result, US data escrow giant Iron Mountain is likely to lose a lot of its ICANN business, as EU registrars defect to local alternatives such as UK-based NCC Group.

The ruling in question deals with the so-called “safe harbor” principles, under which European companies were able to transfer customers’ private data to US companies as long as the recipient promised to abide by EU privacy protection rules.

However, former spy Edward Snowden’s revelations of widespread privacy violations by the US government seemed to show that many US tech giants were complicit in handing over such data to US spooks.

And now the European Court of Justice has ruled the safe habor principles invalid.

This affects registrars because, under their ICANN contracts, they have to escrow registrant data on a weekly basis. That’s to prevent registrants losing their domains when registrars go out of business or turn out to be crooks.

While registrars have a choice of escrow agents, pretty much all of them use Iron Mountain, because ICANN subsidizes the service down to $0.

However, with the ECJ ruling, Euro-registrars have told ICANN that it would now be “illegal” to continue to use Iron Mountain.

In a recent letter (pdf) to ICANN, about 20 EU-based registrars said that non-European registrars would get a competitive advantage unless ICANN does something about it.

They want ICANN to start subsidizing one or more EU-based escrow agents, enabling them to switch without adding to costs.

the service fees of those [alternative] providers are not being supported by ICANN. Thus, the only solution for EU based registrars to comply with their local laws is to support this extra cost.

We are sure, you will agree this clearly constitutes an unfair disadvantage to a given category of a registrars.

This is why we ask ICANN to offer the same terms as it currently does to Iron Mountain to other RDE [Registrar Data Escrow] providers established in the European Economical Area to ensure a level playing field for registrars globally.

According to the registrars, they have until January to switch, so ICANN may have to move quickly to avoid unrest.

Endurance splashes out $1.1 billion on Constant Contact

Kevin Murphy, November 2, 2015, Domain Registrars

Endurance International is to acquire email marketing company Constant Contact for $1.1 billion.

The $32-a-share cash offer, a 23% premium on Constant Contact’s Friday closing price, has been approved by both boards.

Endurance counts registrars BigRock, Domain.com and ResellerClub among its portfolio of brands, which also includes hosting companies HostGator and BlueHost.

The company said the deal will push its annual revenue to over $1 billion for the first time.

Endurance has acquired over 40 companies in its history, according to CEO Havi Ravichandran, who described M&A activity as a “core competency”.

The deal, which is subject to regulatory and shareholder approval, will be funded with debt.

The company today reported a third-quarter loss of $15.4 million, about double its year-ago loss, on revenue that was up 18% to $188.5 million.