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XYZ buys dormant gTLD from “pyramid scheme” operator

Kevin Murphy, November 19, 2019, Domain Registries

XYZ.com has bought another unused dot-brand to add to its portfolio.

It’s taken over the contract for .quest from original registry Quest ION Ltd, a subsidiary of a Hong Kong-based multi-level marketing company called QNet, according to ICANN records.

The gTLD will become the 13th that XYZ has a stake in, and the second dormant dot-brand that it’s acquired, after .monster.

.quest has been delegated for a few years, but its owner had no live domains beyond the mandatory NIC site.

I have to say I was unfamiliar with the company until today, but QNet’s Wikipedia page makes it sound sufficiently dodgy that I’m surprised nobody raised questions about its suitability to be a registry during the ICANN application process.

Its multi-level marketing business model has been described as a “pyramid scheme” or “Ponzi scheme” by various governments and has seen QNet hit by serious legal challenges in many countries on at least four continents.

Loads of its executives, including at least one listed on the gTLD application, have been arrested over the years.

But I guess that’s water under the bridge now, because XYZ has taken control of .quest.

There’s no word yet on a launch date.

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.

New gTLD registry is latest billion-dollar unicorn

A new gTLD registry that used a different new gTLD for its original web site has merged to form a new company valued at a billion dollars using a new brand in a third new gTLD.

Combell Group announced this week that it has merged with TransIP Group, and that its combined valuation is over $1 billion.

They’re both European hosting companies. Together, they say that have 1.2 million customers and 600 employees.

The newly merged entity is called team.blue — that’s its brand and, using an Afilias-operated gTLD, its new primary domain.

As a privately held company with a billion-dollar valuation, it joins a list of companies called “unicorns”. For some reason.

Combell and TransIP both have domain registrar businesses and play primarily into the Scandinavian and Benelux regions of Europe.

Combell, which has its corporate site at combell.group, owns Danish registrar DanDomain, which was ICANN-accredited with about 20,000 domains under management until it allowed its accreditation to lapse at the start of the year.

TransIP, which was using a .eu domain, is ICANN-accredited, but has no gTLD domains to its name.

Curiously, the two registrars have sequential IANA IDs — 1603 and 1604.

Combell is also the registry for .gent, the new gTLD for the Belgian city of Ghent.

Dot-brand .bond has been acquired and will relaunch as a generic this July

The domain name’s Bond, dot Bond… or something.

Sorry.

ShortDot, the registry behind the .icu top-level domain, has acquired a dot-brand gTLD and plans to repurpose it as a generic.

The seller is Bond University, a newish, smallish university in Queensland, Australia, and the gTLD is .bond.

ShortDot co-founder Kevin Kopas confirmed the deal to DI tonight, and said the new owner hopes .bond will prove attractive to bail bondsmen, offerers of financial bonds and, yes, fans of the James Bond franchise.

There’s also the dictionary meaning of “bonding” with somebody in a familial, friendly or business sense.

A new Bond movie is due to come out next April, so .bond might pick up a few regs then, assuming the registry is careful not to too closely associate itself with the heavily-guarded IP.

Kopas said that the current plan is to launch a 60-day sunrise period July 9 this year. ShortDot is currently working on unbranding the TLD within its ICANN contract, to allow it to sell to an unrestricted audience.

Premium domains will be offered with premium renewal fees.

ShortDot also plans to move away from Neustar’s back-end to CentralNic.

Bond University never actually used its TLD, which would have been a single-registrant space for its own exclusive use. It’s been dormant since its 2014 delegation, with just a single placeholder domain in its zone file.

There are plenty of those. About 50 owners of unused dot-brands have chosen to terminate their ICANN contracts and simply fizzle away to nothing.

But a small handful of others have chosen to instead sell their contracts to registries that think they can make a bit of money marketing them as generic strings.

The most obvious example of this to date would be .monster, which XYZ.com recently relaunched as a quirky open generic after the jobs site Monster.com decided it didn’t need a dot-brand after all. It’s been on sale for about a month and has about 1,750 names in its zone file.

The first example, I believe, was .observer, which Top Level Spectrum acquired from the Observer newspaper in 2016. That TLD went on sale two years ago but has fewer than 1,000 domains under management today.

Kopas said that the plan is to sell .bond names for between $5 and $10 wholesale.

“Overall the goal of ShortDot is to offer domains that are affordable for end users and profitable for registrars,” he said.

It’s only the company’s second TLD. The first was .icu, which it bought from One.com (which hadn’t really used it) and relaunched in May 2018.

Since then, it’s grown extremely rapidly and is currently the eighth-largest new gTLD by zone file volume.

It had over 765,000 domains in its zone today, up from basically nothing a year ago, no doubt largely due to its incredibly low prices.

Before AlpNames died, it was selling .icu names to Chinese customers for the yuan equivalent of just $0.50.

Today, the domain is available from NameCheap and NameSilo, its two largest registrars, for about $1.50.

Remarkably, spam fighters haven’t highlighted much to be concerned about in .icu yet.

The TLD has a 6.4% “badness” rating with SpamHaus, roughly the same as the similarly sized MMX offering .vip, which is also popular in China, and lower than .com itself.

Compare to .loan, which has a bit over a million names and which SpamHaus gives a 28.7% “bad” score.

In other words, .icu seems to be doing very well, volume-wise, without yet attracting huge amounts of abuse.

It’s a neat trick, if you can pull it off. But is the success repeatable? I guess we’ll find out with .bond when it launches.

CentralNic grabs more of the reseller market with $16.5 million acquisition

CentralNic is living up to its self-described role as an industry “consolidator” with the acquisition of Australian domain wholesaler TPP Wholesale.

The company, assuming it manages to find the financial backing, will pay AUD 24 million ($16.5 million) for the business, currently a unit of ARQ Group (formerly known as Melbourne IT).

TPP has 14,000 resellers and 840,000 domains under management, including 19% of all .com.au registrations, according to CentralNic.

The company reckons the unit had revenue of AUD 17 million ($11.7 million) and EBITDA of AUD 3.9 million ($2.7 million) in 2018, which makes the purchase look like a bit of a bargain when compared to its acquisition of Instra a few years ago.

Donuts acquires its 242nd gTLD

Kevin Murphy, April 29, 2019, Domain Registrars

Donuts, the registry with the largest stable of new gTLDs, has added its 242nd string to its bow.

The company seems to have acquired .contact from, nominally at least, smaller portfolio rival Top Level Spectrum.

The ICANN contract for the gTLD was transferred to one of Donuts’ subsidiaries a couple weeks ago.

According to TLS CEO Jay Westerdal, while TLS was the signatory of the contract the “economic owner” of the TLD was Whitepages.com, an online directory services provider, which paid for the original uncontested .contact application.

Whitepages.com doesn’t appear in the application, the registry agreement, or the IANA records. I was unaware of the connection until today.

Despite being in the root since December 2015, .contact never actually launched. Donuts has not yet filed its launch dates with ICANN either, but it’s usually fairly speedy about pumping out strings.