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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, 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.

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.shop among four gTLDs heading to auction

Kevin Murphy, October 30, 2015, Domain Registries

The new gTLDs .shop, .shopping, .cam and .phone are all set to go to auction after their various delays and objections were cleared up.

It seems that .shop and .shopping contention sets remain merged, so only one string from one applicant will emerge victorious.

That’s due to a completely mad String Confusion Objection decision that ruled the two words are too confusingly similar to coexist in the DNS.

That SCO ruling was made by the same guy who held up both sets of applications when he ruled that .shop and .通販 (“.onlineshopping”) were also too confusingly similar.

The two rulings combined linked the contention sets for all three strings.

.通販 applicant Amazon appealed its SCO loss using a special process that ICANN created especially for the occasion, and won.

But .shop and .shopping applicants were not given the same right to appeal, meaning the auction will take place between nine .shop applicants and .shopping applicants Uniregistry and Donuts.

Donuts is an applicant for .shop and .shopping, meaning it will have to make its mind up which string it prefers, if it intends to win the auction.

If it’s a private auction, Donuts would presumably qualify for a share of its own winning bid. Weird.

(UPDATE: That was incorrect).

The other contention set held up by an inconsistent SCO decision was .cam, which was originally ruled too similar to .com.

Rightside won its appeal too, meaning it will be fought at auction between Famous Four, Rightside and AC Webconnecting.

.phone had been held up for different reasons.

It’s a two-way fight between Donuts and Dish DBS, a TV company that wanted to run .phone as a closed generic. Like almost all closed generic applicants, Dish has since changed its plans.

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Aussie government slams .food closed generic bid

Kevin Murphy, October 30, 2015, Domain Policy

The Australian government is among those asking ICANN deny a request to make .food a “closed generic” gTLD.

Eight people have filed comments opposing Lifestyle Domain’s application for Specification 13 status for its .food registry contract, which would allow the company to keep all .food domains for itself, since we reported the news earlier this month.

The Aussies are arguably the highest-profile opponent, and the one most likely to be taken seriously by ICANN.

Governmental Advisory Committee rep Annaliese Williams wrote:

The Australian Government issued an Early Warning to Lifestyle Domain Holdings, Inc on the grounds that ‘food’ is a common generic term, and that restricting common generic strings, such as .food, for the exclusive use of a single entity could have a negative impact on competition…

The Australian Government does not consider that Lifestyle Domain Holdings’ application to operate .food for its exclusive use serves a public interest goal.

Lifestyle Domain is a subsidiary of Scripps Networks, the company that runs the Food Network TV stations and web site.

The company claims that it has trademark rights to the word “food” that should allow it to run .food as a dot-brand gTLD.

That would mean nobody but Scripps, which won the right to .food at auction, would be able to register .food domains.

ICANN has also received negative comments from employees of registrars (both retail and corporate) and registries.

One comment, taken at face value, appears to be pro-Scripps, but I’m fairly confident it’s actually just extreme sarcasm.

The decision about whether to allow Scripps to add Spec 13 to its contract will be made by ICANN legal staff.

ICANN told me this week that there’s no ETA on a decision yet.

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Credit card hack cost millions

Kevin Murphy, October 30, 2015, Domain Registrars is taking a $1 million per-quarter hit to its revenue as a result of August’s hacking attack.

It also incurred $400,000 in consulting, legal and credit monitoring fees in the third quarter as a result of the breach, CEO David Brown told analysts last night.

Some 93,000 credit card numbers were stolen during the attack, a small portion of its 3.3 million customers.

A number of customers jumped ship as a result of the attack, moving their domains elsewhere, which increased’s churn rate.

“Due to the subscription nature of our business, in the fourth and subsequent quarters we expect the breach will have about a $1 million negative impact on revenue per quarter due to the shortfall from Q3,” Brown said.

It added 15,000 customers in the quarter, lower than the 21,000 it added in Q2.

Net income for the quarter was $6.1 million, reversing a $3.4 million loss in the year-ago period, on revenue that was basically flat at $136.8 million, compared to $137.4 million a year ago.

In response to an analyst question, Brown also commented on the success, or lack thereof, of the company’s new gTLD business. He said:

That continues to be positive, but we’re not doing back-flips here. It’s not that positive. We think it’s good for the market, good for consumers and businesses to have more choices. But they’re not flying off the table. .com and .net and the original extensions still are the force in the marketplace. But as we see more gTLDs and as the market understands them and see the opportunity, we continue to believe that this will be a positive trend. But at this point, it’s not moving the needle in our business or likely in anyone’s business. owns registrars including Network Solutions and

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.cars domains to start at $45,000, retail for $2,500

Kevin Murphy, October 29, 2015, Domain Registries

Cars Registry has set pricing for .car, .cars and .auto domains at crazy-high levels.

If you want to buy a domain in any of the three gTLDs on day one, it will cost you a whopping $45,000.

If you buy one during regular general availability, it’s likely to set you back $2,500.

The registry, a partnership of Uniregistry and, has set its registry fee at $2,000, according to an email sent to registrars this week.

That’s a buck higher than .sucks, one of the most expensive new gTLDs to launch to date.

The sunrise fee will be $3,000 — made up of the regular $2,000 fee plus an added $1,000. Again, that’s higher than .sucks.

The Early Access Period — which, as reported yesterday, has replaced the more usual landrush — will run for nine days with prices ranging from $45,000 to $5,000.

Compared to the usual models of and Uniregistry, which tend towards the mass-market, these prices are colossal.

I wonder how much the pricing was influenced by the fact that the registry has the car-related gTLD market almost entirely sewn up.

Its only potential competitor is .autos, which has been delegated for almost 18 months but has yet to even reveal its launch plans and probably isn’t going to be available to the mass market anyway.

Sunrise for all three gTLDS is due to start December 9, ending January 12. EAP will begin that day, and GA will start January 20.

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