Latest news of the domain name industry

Recent Posts

GoDaddy flips hosting business for $456 million

GoDaddy has sold off its recently acquired PlusServer business for €397 million ($456 million).

The buyer is a private equity firm, BC Partners.

The registrar had taken control of the business when it spent $1.79 billion on Host Europe Group earlier this year, but had said from the start that the asset was for sale.

PlusServer sells hosting to larger companies, which have more demanding support needs that small-business-focused GoDaddy is accustomed to dealing with.

The unit was bringing in annual revenue approaching $100 million per year.

GoDaddy said it planned to put the proceeds of the flip towards paying off some loans.

ICANN gives the nod to Donuts-Rightside merger

ICANN has given its consent to the acquisition of Rightside by rival new gTLD registry Donuts, according to the companies.

The nod means that one barrier to the $213 million deal has been lifted.

Rightside, which is listed on Nasdaq, still needs the majority of its shareholders to agree to the deal and to satisfy other customary closing conditions.

ICANN approval does not mean the organization has passed any judgment about whether the deal is pro-competition or anything like that, it just means it’s checked that the buyer has the funds and the nous to run the TLDs in question and is compliant with various policies.

All new gTLD Registry Agreements given ICANN the right to consent — or not — to the contract being assigned to a third party.

The acquisition was announced last month at the end of a turbulent year or so for Rightside.

GoDaddy launches security service after Sucuri acquisition

GoDaddy has revealed the first fruits of its March acquisition of web security service provider Sucuri.

It’s GoDaddy Website Security, what appears to be a budget version of the services Sucuri already offers on a standalone basis.

For $6.99 per month ($83.88/year), the service monitors your web site for malware and removes it upon request. It also keeps tabs on major blacklists to make sure you’re not being blocked by Google, Norton or McAfee.

This low-end offering gets you a 12-hour response time for the cleanup component. You can up that to 30 minutes by taking out the $299.99 per year plan.

The more expensive plan also includes DDoS protection, a malware firewall and integration with a content delivery network for performance.

There’s also an intermediate, $19.99-per-month ($239.88/year) plan that includes the extra features but keeps the response time at 12 hours.

An SSL certificate is included in the two more-expensive packages.

The pricing and feature set looks to compare reasonably well with Sucuri’s standalone products, which start at $16.66 a month and offer response times as fast as four hours.

As somebody who has suffered from three major security problems on GoDaddy over the last decade or so, and found GoDaddy’s response abysmal on all three occasions (despite my generally positive views of its customer service), the new service is a somewhat tempting proposition.

Donuts to pay $213 million for Rightside

Donuts is to acquire Rightside for $213 million, the companies have just announced.

The $10.60 per share cash offer represents a 12% premium over Rightside’s average closing share price over the last 30 days. Rightside’s 52-week high is over $12.

Just one year ago, Donuts offered $70 million for Rightside’s portfolio of gTLDs, but was shot down.

Rightside also turned down a $5 million offer for four gTLDs from XYZ.com in April 2016.

The $213 million offer is funded at least partly by Silicon Valley Bank, which is providing a credit facility to Donuts.

Assuming the deal closes — which will require the holders of more than half its shares to agree to the price — it will make Rightside a private company once more, as a wholly owned Donuts subsidiary.

The two gTLD registries are already partners, with Rightside providing domain registry services for Donuts’ roughly 200 new gTLDs.

There was talk of a split last year, with Donuts apparent endorsement of Google’s Nomulus platform, but the two companies reaffirmed their relationship earlier this year.

Rightside itself has a portfolio of 40 gTLDs, but it’s faced criticism from shareholders over the last year or so over their relatively poor performance.

Activist investor J Carlo Cannell, who owns almost 9% of Rightside, has been pressuring the company’s board to take radical action for the last 15 months.

Earlier this year, Rightside got out of the once-core wholesale registrar game by selling eNom to rival Tucows for $83.5 million.

Web.com in takeover talks – report

Web.com is in talks to be acquired by private equity firms, according to a report.

Reuters reported last night that the registrar said the talks were “early stage” and that there was no guarantee of a deal.

Web.com is of course home to Network Solutions, Register.com and is involved in secondary market plays SnapNames and NameJet.

The company had 2016 revenue of $710 million and a market capitalization prior to the report of $1.1 billion. Its shares surged on the news.