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Register.com sold at a $65 million loss

Register.com has been acquired by web hosting company Web.com for $135 million, substantially less than the $200 million Vector Capital paid for it five years ago.

Web.com said the acquisition will help it access new small business customers for lead generation, to cross-sell its existing products.

The company’s customer base will increase by over 400% to more than one million customers, Web.com said. The combined firm will have annual revenue of $180 million.

Register.com was one of the first five ICANN-accredited registrars. It failed as a public company, and after years of financial wrangling was finally taken private by Vector in 2005.

Vector specializes in buying up troubled companies and turning them around, but it doesn’t appear to have increased the value of this particular asset over the last five years.

Will ICANN punt .xxx in Brussels?

Is ICANN set to delay approval of the proposed .xxx top-level domain – again – in Brussels?

That’s my reading of ICANN’s latest document concerning ICM Registry’s long-running and controversial battle for a porn-only TLD.

This week, ICANN submitted its summary of the public comment period that ran to May 10. It’s a fair bit shorter than the one Kieren McCarthy compiled for ICM last month.

As usual, it’s written in a fairly neutral tone. But, if you’re feeling conspiratorial, the mask does slip on occasion, perhaps giving a sense of where the .xxx application could head next.

The ICANN summary occasionally breaks from reporting what a commenter actually said in order to highlight a potential problem they did not address.

Example (my emphasis):

Only two commenters directly addressed the question of further interaction with the Governmental Advisory Committee (GAC) on the .XXX sTLD Application. Both of those commenters were against seeking any further input from the GAC outside of any public comment period. Neither of these commenters – nor any other – addressed the potential violation of the ICANN Bylaws that could result from the Board’s failure to properly consider the advice of the GAC

This suggests, to me, that the ICANN board will be receiving advice to the effect that further GAC input needs to be forthcoming before it can move forward with .xxx.

If this is the case, the GAC might have to produce some advice before next Friday’s board meeting if ICM has any hope of getting back around the negotiating table prior to Cartagena in December.

That’s not the only reason to believe ICANN may punt .xxx again, however. Elsewhere in the report, we read (my emphasis again):

For those in favor of proceeding with the .XXX sTLD Application, many created an alternative option – that ICM and ICANN should proceed to a contract right away. There was substantial discussion on this point in the ICM submissions. Few commenters addressed the technical realities identified within the Process Report ‐ that prompt execution of the agreement negotiated in 2007 is not feasible.

The Process Report referenced says that it is not possible to go straight into contract talks because ICM first applied for .xxx more than six years ago.

This has been a bone of contention. ICM points to .post, which was applied for at the same time as .xxx and only approved late last year, as proof that the passage of time should be no barrier.

But ICANN president Rod Beckstrom doesn’t buy that comparison. He wrote to ICM (pdf) at the end of March noting that .post was backed by the International Postal Union, whereas .xxx is “sponsored” by IFFOR, an organization created by ICM purely to act as its sponsor.

In that letter, Beckstrom talks about due diligence to make sure ICM and IFFOR still satisfy financial and technical criteria, and a review of whether .xxx “can still satisfy the requisite sponsorship criteria”.

I’ll admit that I’m breaking out the crystal ball a bit here, and I’ve been wrong before, but I don’t think it’s looking great for ICM in Brussels.

ICANN creates DNSSEC root keys

Kevin Murphy, June 17, 2010, Domain Tech

ICANN took the penultimate step towards adding DNSSEC to the root of the domain name system, during in a lengthy ceremony in Virginia yesterday.

The move means we’re still on track to have the DNSSEC “trust anchor” go live in the root on July 15, which will make end-to-end validation of DNS answers feasible for the first time.

DNSSEC is an extension to the DNS protocol that enables resolvers to validate that the DNS answers they receive come from the true owner of the domain.

Yesterday, ICANN generated the Key Signing Key for the root zone. That’s one of two keys required when adding DNSSEC to a zone.

The KSK is used to sign the DNSKey record, the public half of a key pair used to validate DNS responses. It has a longer expiration date than the Zone Signing Key used to sign other records in the zone, so its security is more important.

The videotaped ceremony, held at a facility in Culpeper, Virginia, was expected to take six hours, due to a lengthy check-list of precautions designed to instil confidence in the security of the KSK.

ICANN said:

During the ceremony, participants were present within a secure facility and witnessed the preparations required to ensure that the so-called key-signing-key (KSK) was not only generated correctly, but that almost every aspect of the equipment, software and procedures associated with its generation were also verified to be correct and trustworthy.

Ten hand-picked independent observers were present to bear witness.

ICANN expects to perform the ceremony four times a year. The second will be held at a backup facility in California next month.

Employ Media asks ICANN for a .jobs landrush

The company behind the .jobs sponsored top-level domain wants to loosen the shackles of sponsorship by vastly liberalizing its namespace.

Employ Media has applied (pdf) to ICANN to get rid of the current restrictions on .jobs domain ownership and open hundreds of thousands of strings to the highest bidder.

The registry wants to amend its contract with ICANN to cut the text that limits .jobs domains to the exact match or abbreviation of a company name, and add:

Domain registrations are permitted for other types of names (e.g., occupational and certain geographic identifiers) in addition to the “company name” designation.

Employ Media is basically asking for the right to open the floodgates to a complete relaunch of the .jobs TLD with very few restrictions on who can register and what strings they can register.

Phase One of the relaunch would be an RFP “to invite interested parties to propose specific plans for registration, use and promotion of domains that are not their company name”.

It sounds a little like the current .co Founders Program, or the marketing initiatives Afilias and Neustar asked for to supplement the auction of their single-character domains.

In practice, I expect that this first phase is when the DirectEmployers Association would expect to grab hundreds of thousands of .jobs domains under its universe.jobs business plan, in which it intends to offer job listings tailored to “city, state, geographic region, country, occupation [and] skill”.

Phase Two would see your basic landrush auction of any premium domains left over.

Phase three would be “A first-come, first-served real-time release of any domains not registered through the RFP or auction processes.”

While I have no strong views on the merits of this particular proposal, I do think that the application and ICANN’s response to it could wind up setting the template for how to operate a bait-and-switch in ICANN’s forthcoming round of new TLD applications.

If you say you want to do one thing with your TLD, and later decide you could make more money doing another, how much will ground will ICANN give when it comes to renegotiating your contract? It will be interesting to find out.

Reactions so far from the HR community have not been positive.

Steven Rothberg of CollegeRecruiter.com wrote that the process by which Employ Media’s sponsor, the Society for Human Resource Management, approved the new proposal “stunk”.

“The only winner here is Employ Media,” he wrote.

Comments posted at ERE.net, which has been on top of this story from the beginning, express what could be easily described as outrage over Employ Media’s plans.

The comment posted by Ted Daywalt of VetJobs.com is especially worth a read.

The Employ Media proposal has been submitted under ICANN’s Registry Services Evaluation Process, which allows comments to be submitted.

WSJ reporting bogus Indian domain name market info?

The Wall Street Journal is reporting that India “passed an Internet milestone of sorts” in the first quarter, when the number of .com domains registered in the country broke through 1 million.

Did it?

This is what the WSJ says:

[India] now has more than one million registered web sites using the suffixes .com or .net, according to data released today by VeriSign Inc., the U.S. company that tracks this sort of thing.

In its Domain Name Industry Brief, it reported that India now has a registered total of 1.037 million .com and .net domain names, up from about 800,000 in the same period the year before.

The number 1.037 million is terribly specific, considering that VeriSign’s Domain Name Industry Brief doesn’t say anything of the sort.

There’s nothing in the DNIB to suggest that anybody in India has ever registered a single .com domain.

The DNIB has never broken down .com registrations by location, and the Q1 report, released on Monday, doesn’t use the word “India” once.

If the WSJ numbers are accurate – the paper does appear to have interviewed a VeriSign India executive – I’m wondering how they were calculated.

It can’t be a case of tallying the number of .com domains managed by Indian registrars. Mumbai-based Directi alone has had more than a million .com names under its belt for a long time.

Could VeriSign be mining Whois records for location data?

It runs a thin registry, so it would have to reference Whois data acquired from its registrars in order to compute the numbers.

Or did the WSJ hit on unreliable sources? It seems possible.