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Donuts quietly buys .shopping from Uniregistry (and .jetzt)

Just a few months after Uniregistry bought out Donuts to win .shopping, Donuts has bought the pre-launch gTLD back.

Donuts has also bought live gTLD .jetzt from a Swedish company.

The .shopping deal is a weird one.

Uniregistry and Donuts were the only two applicants for .shopping, until Uniregistry paid Donuts to withdraw its application back in January.

Uniregistry went on to sign its ICANN Registry Agreement in March, but less than a month later, April 27, transferred the contract to Donuts.

.shopping had been entangled in the .shop contention set, which was eventually resolved when GMO Registry paid $41.5 million at ICANN auction.

Despite the unusual circumstances, Uniregistry CEO Frank Schilling said today it was just the simple sale of a string. Donuts declined to comment. Neither revealed a price.

The second Donuts acquisition, closed April 26, was of .jetzt, which was applied for, delegated to and managed by New TLD Company AB of Sweden.

That gTLD, which is German for “.now”, has been in general availability for almost two years but has only 5,600 names in its zone file.

Donuts declined to comment, but it seems to me we’re looking at a failing gTLD looking for a white knight in this instance.

Donuts wins .doctor

Donuts has emerged the victor of the .doctor gTLD contention set.

Competing applicants Radix and The Medical Registry both withdrew their applications last week.

The string wasn’t due to head to its ICANN last-resort auction until May 25, indicating that the contention set was settled privately.

.doctor has been the subject of some controversy.

ICANN’s Governmental Advisory Committee had insisted that .doctor should be reserved purely for licensed medical doctors.

Donuts had complained that this would rule out use by any of the myriad other types of doctor, as well as registrants using “doctor” in a fanciful sense (like “rug doctor” or “PC doctor”).

ICANN initially accepted the GAC advice, but changed its mind this February, declining to impose such restrictive language on .doctor’s contractual Public Interest Commitments.

So it seems that .doctor will be generally unrestricted.

Donuts will have to sign up to the standard “Category 1” PICs, which require the registry to work with relevant regulatory bodies, however.

Donuts makes weird investment in startup

Donuts has made a surprising investment in a company that makes geolocation technologies.

The new gTLD registry operator announced yesterday that it has something called Donuts Labs, through which it will make “strategic investments” in “similar” companies.

Its first investment is in California tech startup GeoFrenzy, which operates in the emerging “geofences” space.

A geofence is a virtual perimeter around a defined geographic location.

Basically, GeoFrenzy has divided the world up into square-centimeter chunks and stores data about who owns these chunks in a registry database.

Using the GPS service you’ll find in all modern mobile devices, apps using the technology can figure out when you walk into or out of a registered, fenced-off area, triggering some behavior.

Such services are believed to have applications ranging from logistics to advertising. One example on the GeoFrenzy web site says that its database and software could be used to keep drones out of restricted airspace.

The terms of the deal with were not disclosed, but it’s surprising news for a couple of reasons.

First, Donuts appears to have cash to throw around on pet side-projects at a time when one would assume, as an early-stage company itself, it would be more focused on growing its fledgling new gTLD business.

Second, the press release makes out that there are technology synergies between the companies.

GeoFrenzy CEO Sean Eilers is quoted as saying: “Their expertise in managing a highly scalable registry and their experience with innovative DNS technologies makes Donuts an ideal fit as an investor and strategic partner.”

But to the best of my knowledge Donuts doesn’t have any experience managing a highly scalable registry. It outsources all of that kind of thing to Rightside, doesn’t it?

Donuts says it will be making more, similar investments in future.

.mobile will be restricted after Donuts loses auction to Dish DBS

Kevin Murphy, March 15, 2016, Domain Registries

The contention set for the new gTLD .mobile has been resolved, seemingly by private auction, with Dish DBS emerging victorious.

The portfolio registry withdrew its application at the weekend, leaving the satellite TV provider the only remaining applicant.

This means that .mobile will be a restricted gTLD, available only to vetted members of the mobile telephony industry.

Dish had originally proposed .mobile as a so-called “closed generic”, in which it would be the registry and only registrant, but changed its application last year.

It’s a similar story to .phone, which Dish also won.

Dish applied for 13 gTLDs. It withdrew two applications, and 10 others are either in pre-delegation testing or ICANN contracting.

Schilling agrees with activist Rightside investor

Uniregistry boss Frank Schilling agrees to a large extent with the fellow Rightside investor who was revealed today to be threatening a boardroom coup at Rightside.

Schilling, who is believed to have paid $8.4 million for 6.1% of Rightside, told DI tonight that he believes Rightside’s management has not done a good job over the last few years.

He said he agrees with 7.32% shareholder J Carlo Cannell, who says that Rightside should get rid of some of its weaker new gTLDs.

Cannell, of Cannell Capital, is demanding Rightside lay off one in five of its staff, dump its weakest new gTLDs, and refocus the company on its eNom registrar business.

He’s threatening to launch a proxy fight at the company in order to replace the Rightside board of directors with his own slate if management does not do what he wants.

Cannell’s letter called out .democrat, .dance, .army, .navy, and .airforce as “irrelevant” or “garbage” gTLDs in Rightside’s portfolio that should be sold or simply “abandoned” in order to focus on its better gTLDs, such as .news, and its cash-generating registrar business.

Schilling told DI tonight that he agrees with Cannell, at least partly.

He said that if Cannell’s proposal for the company is good for shareholders and the company he would support it.

It may sound counter-intuitive for Schilling, one of the most ardent proponents of new gTLDs, to support somebody encouraging Rightside to invest less in marketing its new gTLD portfolio.

After all, Uniregistry has a couple dozen new gTLDs — including .sexy, .christmas, .pics and .link — in its stable

But Schilling has form when it comes to advocating portfolio rationalization.

Today he pointed to comments he made on a DI article in December

“Operators may make the decision to give away or sunset unprofitable strings,” he said in those comments. “I don’t view that as such a bad thing.”

Schilling said that weaker strings should be “bootstrapped” rather than aggressively invested in.

One of Cannell’s beefs with Rightside is that the company is focusing too much on new gTLDs. He’s not opposed to new gTLDs in general — in fact, he likes them — but he wants Rightside to put money only into those gTLDs he considers worthwhile.

Cannell also wants Name.com rebranded to eNom and moved to Rightside’s Seattle headquarters, for two of its directors to be replaced and for 20% of Rightside’s “weakest” staff to be laid off.

I asked Schilling whether he agreed with Cannell that that 20% of Rightside’s staff should be let go.

He said: “I do not think it is healthy to name arbitrary numbers but I do think some wrong people are in the wrong seats.”

Schilling also said that he believes Rightside has been “subservient” to Donuts, and has given Donuts too much for too little.

Donuts is the portfolio gTLD registry play that uses Rightside as its back-end registry provider.

Donuts has a much better portfolio, in my irrelevant opinion.

Another notable investor in Rightside is XYZ.com CEO Daniel Negari and his COO Michael Ambrose, who collectively invested roughly $8.5 million in Rightside at around the same time as Schilling and Cannell bought their stakes.

Like Schilling, they’re an obviously pro-new-gTLD play. I’ve asked Negari for his opinion on Cannell’s letter and will update should I ever receive a response.