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Neustar takes control of two new gTLDs

Kevin Murphy, August 12, 2019, Domain Registries

Neustar has started taking over former dot-brand new gTLDs belonging to its former clients.

It recently took control of .compare and .select, which previously belonged to Australian insurance company iSelect.

Neustar had been the back-end registry provider for both TLDs.

As previously blogged, iSelect abandoned its primary dot-brand, .iselect, in June.

That was despite that fact that it was actually in use, with domains such as home.iselect, news.iselect and careers.iselect all resolving to web sites.

Now, the generic dot-brands .compare and .select have been assigned to the blandly named Registry Services LLC, a new Neustar subsidiary.

They’re not the first examples of dictionary words functioning as dot-brands being repurposed as generics.

Notably, XYZ.com took over .monster from Monster.com and ShortDot bought .bond from Bond University.

Neustar has not yet announced its plans for its two new acquisitions.

CentralNic to pay $3.4 million for iwantmyname

Kevin Murphy, August 7, 2019, Domain Registrars

CentralNic has made yet another registrar acquisition, picking up New Zealand-based Ideegeo Group for the equivalent of $3.4 million.

The company said it will pay NZD 5.2 million, of which 10% is being deferred until May 2021.

Ideegeo runs the registrar iwantmyname.com. It’s not ICANN-accredited in its own right, rather it’s a reseller of Hexonet, which CentralNic has also acquired.

With 180,000 names under management, Ideegeo accounted for a little under 5% of Hexonet’s business in terms of domain names.

Ideegeo had revenue last year of NZD 6.2 million ($4.2 million) and EBITDA of NZD 0.9 million ($600,000), CentralNic said.

CentralNic indicated that the acquisition has enabled it to lock in that revenue, preventing iwantmyname switching to a different reseller network.

But it’s not just the DUM CentralNic is interested in. It also said it wants its user-friendly interface, which it intends to roll out across its other retail registrar web sites.

There are also up-sell opportunities, as iwantmyname currently sells only domain names and none of the usually associated accoutrements.

It’s CentralNic’s fifth acquisition in the last 12 months.

It still has plenty of money left over from a recent €50 million ($56 million) bond issue, so don’t expect it to be the last.

Looks like .fans has a new Chinese owner

It appears that the struggling new gTLD .fans has changed ownership for the second time in a year.

According to ICANN’s web site, the .fans Registry Agreement was assigned to a company called ZDNS International on June 28.

Since August 2018, the contract had been in the hands of a CentralNic subsidiary called Fans TLD, having been originally operated by Asiamix Digital.

ZDNS International appears to be a newish Hong Kong subsidiary of major China-based DNS service provider ZDNS.

ZDNS provides DNS services for more than 20 TLDs, mostly Chinese-language, but as far as I can tell it is not the contracted party for any.

It’s also known for providing registry gateway services for non-Chinese registries that want to set up shop in the country.

CentralNic took over .fans last year after Asiamix failed to get the TLD’s sales to take off.

.fans had about 1,700 domains under management at the time, and it’s been pretty much flat ever since. I don’t think CentralNic has been promoting it.

Over the same period, singular competitor .fan, which Donuts acquired from Asiamix last year, has gone from 0 to almost 3,000 registrations.

If CentralNic, a public company, made a profit on the flip it does not appear to have been material enough to require disclosure to shareholders.

CentralNic boosts reseller biz with $11.3 million Hexonet buy

CentralNic is to acquire rival reseller-based registrar Hexonet for up to €10 million ($11.3 million), its fourth acquisition in the last 12 months.

Hexonet has over 3.8 million domains under management, according to CentralNic, sold either directly or via one of its over 1,000 resellers.

Hexonet’s primary ICANN accreditation, 1API.net, was responsible for roughly 760,000 gTLD domains at the last count, but appeared to be on the decline.

CentralNic said its reseller business will grow by about 28% in terms of domains due to the deal.

Hexonet had revenue last year of about €16.5 million ($19.4 million) and EBIDTDA of about €0.8 million ($0.9 million), and will immediately contribute to the bottom line, CentralNic said.

But it’s probably not great news for everyone — in order to receive the full €10 million Hexonet had to slash €300,000 from its budget.

CentralNic is paying €7 million in cash now, covered by the €50 million bond it recently issued, and will pay another €3 million in either cash or shares (its choice) on the one-year anniversary of the deal closing, expected this month.

Hexonet has offices in Canada and close to CentralNic’s recently acquired Germany operations.

Hexonet also acts as the de facto exclusive registrar for a handful of dot-brands, including .audi, .volskwagen and .bugatti, relationships that one imagines CentralNic’s registry back-end business could try to leverage.

In the last year, CentralNic has acquired KeyDrive, TPP Wholesale and GlobeHosting.

Afilias buys the other half of .global

Afilias has acquired one of its new gTLD back-end customers, Dot Global Domain Registry Limited, the registry for .global.

It immediately makes .global Afilias’ best-performing 2012-round new gTLD.

The price of the deal, between two private companies, was undisclosed.

As DI reported last November, Afilias already owned 45% of the company, which had 2017 revenue of $1.9 million and a $320,000 loss.

.global is a relatively good new gTLD business, as new gTLDs go.

We’re looking at a business with probably still low-seven-digit annual revenue, with annual adds and renewals trending upwards.

It had over 48,000 domain under management at the last count, with about about 22,500 annual renews.

The names renew at $100 at GoDaddy, which with 30% of .global regs is the largest .global registrar.

NameCheap, the second-largest registrar (with 11%), renews at about $65.

Anecdotally, it’s a new gTLD that I regularly come across in the wild, which is still relatively noteworthy. It’s often used by multinational companies for global gateway sites.

Afilias said that because .global already runs on its back-end, there won’t be any burdensome migration work for registrars, just some “paperwork will need to be updated”.

In terms of domains under management, .global immediately becomes Afilias’ highest-volume new gTLD (excluding pre-2012 .info, .pro and .mobi).

Its biggest 2012-round TLD, from the about 20 it owns, was .red, with around 34,000 DUM.