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Afilias wants to buy your failed gTLD

Afilias is on an overt campaign to snap up struggling new gTLDs at bargain basement prices.

“In the neighborhood of a dozen” gTLD operators responded seriously to Afilias’ booth at last month’s ICANN meeting in Buenos Aries, (pictured), Afilias chief marketing officer Roland LaPlante told DI in an interview today.

The company could potentially buy up tens of gTLDs over the coming year, LaPlante said.

“If all of these 500 strings with less than 5,000 names in them start looking for a new owner, it’s going to be a pretty active marketplace,” he said.

Afilias

“There are entrants in the market who either have found the market is not as they expected, or results are not what they need, or for whatever other reason they’re coming to the conclusion this isn’t the business they should be in and they’re looking for options,” LaPlante said.

“There’s been a cold splash of water in the face for a lot of people who didn’t expect it, they’re struggling with relatively low revenues compared to what they might have expected,” he said. “They’re likely to be looking for options.”

Afilias would be happy to take these contracts off their current owners’ hands, for the right price.

“Frankly, we’re not going to be paying huge prices for them,” LaPlante.

“We’ve run into a number of folks who still have fairly inflated opinions of what their string is worth,” he said. “Some of these strings are attractive, but they’re going to need a lot more time to mature.”

Afilias believes that the economies of scale it already has in place would enable it to turn a profit at a much lower registration volume, perhaps under 50,000 names, and that it has the patience and financial strength to wait for its acquisitions to hit those volumes.

“We’re very conservative in our volume estimates,” LaPlante said.

Afilias currently has 26 new gTLDs as back-end and 13 as contracted registry operator.

The company is basically looking for acquisitions where the seller’s looming alternative might be the Emergency Back-End Registry Operator, and where the fees associated with an auction might be a bit too rich.

While LaPlante jokingly compared the proposition to the “We Buy Any Car” business model, he admitted that some registries are less attractive than others.

gTLDs with a lot of restrictions or monitoring would be treated with much more caution — Afilias was not interested in .hiv, which failed to sell at auction recently, for example — and would be skeptical about registries that have given away large numbers of free domains.

“We’d like to pick up strings that have good potential for a profitable amount of volume,” he said.

Afilias quietly sold .meet to Google earlier this year, but LaPlante denied that Afilias is in the business of flipping gTLDs. While he could not get into details, he said the .meet deal was a “special case”.

As we discovered last week, at least eight new gTLDs have changed ownership since signing their registry contracts. A few others have been acquired pre-contracting.

Afilias promises cash for LGBT cause with .lgbt sales

Afilias has promised to donate a slice of .lgbt registration fees to a LGBT organization for the next few months.

The company, which acts as registry for .lgbt, said it will give $20 to the It Gets Better Project for every name registered through October 11.

It Gets Better is a US-based non-profit devoted to supporting LGBT people through their often rough teenage years.

Afilias said the promotion is meant to celebrate the recent legalization of same-sex marriage in the US and Ireland.

The October 11 end date was picked because that is National Coming Out Day in the US.

.lgbt names currently retail for roughly $45 to $60 a year.

XYZ buys .security and .protection from Symantec

XYZ.com has added .security and .protection to its portfolio of new gTLDs under a private deal with security software maker Symantec.

Symantec originally applied for both as closed generics, but changed its plans when ICANN changed its tune about exclusive access gTLDs.

The company won .security in an auction against Donuts and Defender Security late last year; .protection was uncontested. It lost auctions for .cloud and .antivirus.

Symantec’s .symantec and .norton, both dot-brands, are currently in pre-delegation testing.

XYZ already owns .college, .rent and of course .xyz.

In other news, Afilias has acquired .promo, which was in PDT with applicant Play.Promo Oy, in a private auction.

UPDATE: A couple of hours after this post was published, XYZ announced it has also acquired .theatre, which will compete with Donuts’ .theater, from KBE gTLD Holding Inc.

Afilias cancels $100m London IPO

Kevin Murphy, January 6, 2015, Domain Registries

Afilias has cancelled its planned London Stock Exchange IPO due to “market conditions”.

It seems to be a cancellation, rather than a postponement, according to a company spokesperson.

“The final decision to cancel the IPO was based on market conditions at the time,” she told DI today.

No additional information was available, but I suspect the company was not able to drum up sufficient interest, at its target price, from institutional investors in the two-week period between its IPO filing and its due date.

Afilias said on October 28 that it planned to raise approximately $100 million selling shares on London’s Alternative Investment Market.

The flotation was expected to take place November 12, but that date came and went with no action.

AIM is currently the home of rival TLD registries CentralNic and Minds + Machines, neither of which saw any particular share price problems during that two-week window.

Afilias had revenue of $77.6 million in 2013, making an operating profit of $30.4 million and $45 million in operating cash flow, largely from selling .info and .mobi domain names.

The company is the back-end provider for almost 50 live 2012-round new gTLDs and has a couple hundred more deals with applicants whose strings have not yet been delegated.

Hotly contested gTLDs up for auction tomorrow

Kevin Murphy, December 16, 2014, Domain Registries

ICANN’s fifth set of last-resort new gTLD auctions is set for tomorrow and it’s another small batch.

Just two contention sets — .baby and .mls — are set to be resolved, with ICANN stashing the winning bids into its special fund.

.baby is hotly contested with no fewer than six applicants — five portfolio applicants and one big brand.

Will Johnson & Johnson get what was once a single-registrant “closed generic”, or will Donuts, Google, Radix, Famous Four or Minds & Machines prevail?

Meanwhile, .mls (for “multiple listing service”, a type of real estate listings aggregation service popular in North America) is a two-horse race between Afilias and the Canadian Real Estate Association.

I’m tempted to call this one for CREA. The organization is so desperate for the .mls gTLD that it filed two applications, one “community” and one vanilla.

The community application was withdrawn earlier this year when CREA scored 11 out of 16 points on its Community Priority Evaluation, failing to pass the 14-point threshold.

The organization even filed a Legal Rights Objection against Afilias in attempt to kill off the competition, which also failed.

Having fought off these challenges, Afilias is either going to get the gTLD or walk away empty-handed. The last resort auction does not compensate unsuccessful bidders for their investments.