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Melbourne IT gets out of brand protection with $157m sale to CSC

Kevin Murphy, March 12, 2013, Domain Registrars

Corporation Service Company has acquired Melbourne IT’s flagship digital brand management service for a ridiculously expensive AUD 152.5 million ($157m).

The shock news takes Melbourne out of the high-margin defensive registration and brand monitoring market, leaving it as a basic domain registrar focused on small businesses.

For CSC, the deal leaves it with a considerably strengthened hand in the DBS space, which is poised to benefit from the massive influx of new gTLDs over the next few years.

It also means that all of the over 100 new gTLD applications Melbourne was supporting as a consultant will now be managed by CSC.

The price of AUD 152.5 million is far more than Melbourne IT could have hoped to ask for, equal to almost its entire market capitalization of AUD 160 million.

Melbourne has had a rocky time on the markets of late, and had previously disclosed that it was looking to sell off some units in order to appease shareholders and rationalize its business.

But DBS was considered a core business, bigger now than Melbourne’s regular domains business, and likely not for sale. CSC’s high-premium offer was too good, it seems, to be responsibly refused.

“While this was not a business that we had specifically earmarked for sale, given the value creation provided by the transaction, this was an opportunity which could not be ignored,” CEO Theo Hnarakis, said in a statement.

The deal follows the sale of MarkMonitor, a key Melbourne competitor, to Thomson Reuters last July. When it comes to brand protection in the domain name space, it’s a big boy’s game nowadays.

Melbourne will remain a domain registrar with over four million names under management.

The DBS business was formed in 2008, largely as a result of Melbourne’s purchase of Verisign’s brand services division for $50 million.

.xxx sunrise auctions delayed after 80k applications

Kevin Murphy, November 2, 2011, Domain Registries

ICM Registry has apparently delayed the results of its just-closed .xxx sunrise period until December to give it a chance to clear its backlog of unverified applications.

Corporation Services Company, a major brand-protection registrar, is reporting tonight that ICM and its validation firm, IProta, does not expect to finish validating trademark claims until November 28.

That’s a week later than ICM had planned to kick off the auction phase of the sunrise period, during which contested domains will be awarded to the highest bidder.

“The results of the applications that were submitted during the Sunrise phase will therefore not be available until the first week of December,” CSC said on its blog.

ICM announced yesterday that it has received almost 80,000 sunrise applications from trademark owners and porn companies seeking .xxx domains to match their .coms.

Almost half of those applications were filed during the last week of sunrise. Each trademark claim needs to be individually validated against government databases by IProta.

The plan, according to ICM’s web site, was to start auctioning contested sunrise domains November 21 and to take .xxx into general availability December 6.

Landrush kicks off next Tuesday, running for 17 days. Landrush auctions are scheduled to commence December 12, according to ICM’s web site.