Latest news of the domain name industry

Recent Posts

CentralNic buys .fans for peanuts

Kevin Murphy, October 8, 2018, Domain Registries

CentralNic has acquired the flailing new gTLD .fans for an undisclosed sum.

The value of the deal was low enough that publicly traded CentralNic was not obliged to disclose the purchase to the market, CEO Ben Crawford confirmed.

The ICANN contract seems to have changed hands — transferred to a CentralNic subsidiary call Fans TLD Ltd — back in August.

We revealed back in May that CentralNic was acting as a caretaker for .fans, and sister TLD .fan, after original registry Asiamix Digital failed to make enough money to keep the business going.

.fan, which Asiamix bought from Donuts but never launched, was sold back to Donuts in June.

Donuts took .fan to sunrise last week and plans to take it to general availability in December.

.fans domains, meanwhile, have been in registrar storefronts since 2015, but the current tally of registered domains is barely above 1,600.

Domains are still selling for around the $100 mark, roughly double the expected retail price of .fan.

CentralNic acquired yet another company

Kevin Murphy, September 7, 2018, Domain Registrars

Acquisitive registry/registrar CentralNic has picked up another company, paying up to €2.56 million ($2.95 million) for a small Delaware-based registrar.

It will pay €1.5 million up-front for GlobeHosting, with the rest coming in two annual installments.

GlobeHosting may have a US corporate address, but it plays primarily in the Romanian and Brazilian markets.

It’s not ICANN-accredited. Instead, it acts as a Tucows reseller for gTLD domains (though I imagine that arrangement’s days are numbered).

The company had revenue of €849,000 for the 12 months to July 31 2018 and EBITDA of €419,000, CentralNic said.

The timing is arguably opportunistic. Earlier this year, Romanian registry ICI Bucharest (or ROtld) introduced an annual domain registration renewal fee for the first time (for real).

It recently started deleting names that do not pay the fee, a modest €6 per year.

CentralNic said that GlobeHosting, which appears to be notable player in the .ro market, is “expected to benefit” from this change.

KeyDrive reverses into CentralNic in $55 million deal

CentralNic this morning confirmed that it has signed a deal to merge with KeyDrive to dramatically grow its market share in the registrar and registry markets.

The deal, technically a reverse takeover, is worth up to $55 million, $10.5 million of which is performance-related.

KeyDrive is the holding company for brands including the registrars Key-Systems, Moniker and BrandShelter and the registries OpenRegistry and KSRegistry.

It is by far the bigger player in the registrar space. The combined company will have 7.1 million domains under management, 5.8 million of which will come from the Luxembourg-based firm.

“The acquisition of KeyDrive is transformative for CentralNic, significantly increasing the Company’s scale and giving it significant extra firepower in the domain name industry to rival the traditional major players,” CentralNic CEO Ben Crawford said in a statement.

CentralNic says the deal will make it the 11th-largest registrar in terms of gTLD domains under management and the fifth-largest registry back-end in terms of TLDs managed (which will hit 118).

KeyDrive had 2017 revenue of $58.26 million and adjusted EBITDA of $5.87 million. Operating profit was $4.3 million.

CentralNic had 2017 revenue of £24.3 million ($32.2 million), adjusted EBITDA of £6.6 million ($8.7 million) and operating profit of £1.8 million ($2.4 million). These numbers do not include the £3.2 million-a-year SKNIC business, which CentralNic acquired right at the end of last year.

KeyDrive CEO Alexander Siffrin will become COO of CentralNic and one of its largest shareholders, owning 16.4% of the combined company’s shares.

The acquisition itself is fairly complex.

CentralNic will raise $16.5 million cash in a share placement and it will issue $19.3 million of shares to a holding company majority-owned by Siffrin. The remaining $10.5 million is performance related and may be paid in a combination of cash and shares, mostly shares.

It’s all subject to shareholder approval at an August 1 general meeting.

Assuming the deal closes, CentralNic says its plan is to become the “GoDaddy of Emerging Markets”, though what this means in practice is not immediately clear.

It does seem that there will be some job losses as the company rationalizes staffing across its various locations.

As far as technical integration goes, CentralNic’s registrars will migrate to KeyDrive’s platform and KeyDrive’s registries will migrate to CentralNic’s registry platform.

The potential for a deal was first revealed in March, after a leak. Trading in its shares was halted as a result, but resumed this morning.

CentralNic now managing failing .fan and .fans

CentralNic appears to be acting as a caretaker for the failing new gTLDs .fan and .fans.

IANA records show that a company lawyer took over as administrative contact for the pair late last week.

Asiamix Digital, the original registry, is still listed as the sponsor for both, and its ICANN registry agreement does not appear to have been reassigned.

It does not appear to be an acquisition. I hear Asiamix is basically using CentralNic’s TLD management service, as it struggles to remain alive.

CentralNic already acts as the back-end registry for both TLDs.

ICANN hit Asiamix with a breach notice for tens of thousands of dollars of unpaid fees a month ago, terminating its affiliated registrar for the same reasons around the same time.

The registry had attempted to auction off the strings a couple of years ago, unsuccessfully.

While technically based in Hong Kong, ICANN has been sending Asiamix’s compliance notices to an address in Milan, Italy.

All of Asiamix’s official web sites still appear to be non-functional. I bought the .net address listed in its IANA records to make a silly point a month ago and the equivalent .com has since expired too.

.fans has about 1,400 names in its zone file right now, while .fan never actually launched.

MMX could announce acquisition this week

New gTLD registry MMX could announce plans to be acquired as early as this week.

The company told the markets last week that its delayed 2017 financial results would be announced in “early May”, along with the “conclusion of the strategic review” it has been teasing investors about for almost a year.

The “strategic review”, announced last May, is exploring “how MMX can participate in a broader industry consolidation” including acquisition or merger.

MMX said last week that “constructive discussions continue to progress”.

It has previously described the duration of the negotiations, initially slated to close last September, as “frustrating”.

Unlike AIM-listed rival CentralNic, which has confirmed it is in reverse-takeover talks with KeyDrive, MMX has not revealed which potential buyer(s) it has been talking to.

MMX, also listed on AIM, has a market cap of £69.3 million ($94.3 million) today.

In January, it informally reported that its 2017 billings are expected to be around the $15.6 million mark, allowing the company to hit operating profitability for the first time.

The company runs 25 new gTLDs solo and five more in partnerships with other companies, but by far and a way the best volume performer is .vip, which accounts for well over half of its registrations largely due to its resonance in China.