Top Level Domain Holdings made almost $5 million by losing auctions for the .lawyer and .website gTLDs this week, according to the company.
The London-listed company told the markets today that it has added £2.97 million ($4.81 million) to its coffers as a result of the auctions, in which Radix won .website and Donuts won .lawyer.
The number is net of the 4% cut taken by Innovative, which conducted the auctions, and the two $65,000 refunds TLDH will receive from ICANN when it withdraws the applications.
Some portion of the $4.8 million TLDH will have received from Donuts, where .lawyer was a two-horse race.
Radix’s winning bid for .website will have been split evenly between TLDH and Donuts.
At least one of these TLDs seems to have sold for significantly more than the average private auction selling price, which was $1.33 million after the first 14 Innovative auctions.
Innovative has managed auctions for 18 strings, but we don’t know the total price of the latest four.
The .website and .lawyer deals means TLDH now has £10.1 million ($16.3 million) in cash reserves, according to a company press release.
It still has 43 contested applications, however. On a $16 million budget — quite a lot less than some of its portfolio rivals — the company is going to have to make some smart tactical moves to maximize its gTLD portfolio.
“Our strategy remains to best monetise those applications where we see least value so that we can maximise our ability to acquire those names in which we see greatest value,” chairman Fred Krueger said in the press release.
It still has stakes in 25 uncontested gTLDs.
NOTE: An earlier version of this story contained inaccurate statements — failing to take into account that .website was a three-way contest — about the average selling price of new gTLDs at auction.
Directi-affiliated TLD registry Radix, has won the private auction for the .website gTLD, according to Radix.
The company beat rival portfolio applicants Donuts and Top Level Domain Holdings to the string, in an auction that was managed by Innovative Auctions, likely one of several going on this week.
There’s no outstanding Governmental Advisory Committee advice or objections to the Radix application, so its path to contracting and eventual delegation should be relatively uncontroversial now.
The price was undisclosed, Innovative’s standard terms.
Directi is in the process of being acquired by Endurance International, owner of Domain.com, which promised Radix up to $62 million to help with its gTLD auctions.
Only eight new gTLD contention sets were resolved during Innovative Auctions second round of private auctions this week, and the average winning bid has gone down.
The eight strings sold for a combine $9,651,000, or an average of $1.2 million per string. That’s down from the $1.5 million average reported from the first round of auctions in June.
The overall average winning bid from Innovative’s auctions is now $1.33 million.
Over 100 gTLDs had been committed to the second round by various applicants — which put up 68 strings and wound up winning three — but the auctions can obviously only go ahead if the whole contention set agrees to participate.
According to Innovative, these are the winners this week:
- .guide: Donuts
- .construction: Donuts
- .storage: Extra Space Storage (applying as Self Storage LLC)
- .desi: Desi Networks
- .expert: Donuts
- .fishing: Top Level Domain Holdings
- .casa: Top Level Domain Holdings
- .网址 (.wangzhi): Hu Yi Global
These were all two-applicant contention sets (Go Daddy had originally applied for .casa, but withdrew its application months ago).
Losing applicants — which get to take home the winning’s bidder’s cash, net Innovative’s fees — were Demand Media, Afilias, Dot Construction, and Red Circle.
The DI PRO Application Tracker will be updated daily as and when the losing applications are withdrawn. So far, only Donuts’ bid for .casa has had its withdrawal processed by ICANN.
Innovative seemed to blame the low turnout on the August holiday period, and said it has scheduled its third round of auctions for September 10.
Top Level Domain Holdings has committed four of its applied-for gTLDs to private auctions due to kick off tomorrow.
The four strings are .guide, .casa, .网址 (“web address” in Chinese) and .fishing, each of which has only one competing applicant.
The company will bid against Donuts on .casa and .guide, Demand Media on .fishing and Hu Yi Global Information Resources on .网址.
Results of the auctions, managed by Innovative Auctions, are expected to be announced next week.
TLDH was initially cautious about the idea of private auctions, but later decided to participate, for reasons CEO Antony Van Couvering explained in this June article.
Over 100 strings, including 68 from Donuts, are expected to be hitting the block with Innovative this week. The first six strings to be auctioned this way raised an average of $1.5 million per string.
TLDH has 49 strings in active contention.
Donuts has committed 68 of its new gTLD applications to a set of private auctions due to commence August 13.
It’s the second round of auctions conducted by Innovative Auctions, which last month settled six contention sets for an average of $1.5 million per TLD.
Here’s the full list of Donuts’ strings:
.apartments .hot .art .jewelry .auction .law .audio .lawyer .baseball .legal .beauty .life .blog .living .boats .loans .broadway .memorial .broker .online .cafe .phone .casa .pizza .chat .place .church .plus .city .property .construction .rent .data .run .deals .salon .direct .school .discount .search .dog .show .expert .site .fish .soccer .football .storage .forum .store .furniture .studio .fyi .style .garden .team .global .theater .gratis .trading .group .website .guide .wedding .help .world .hosting .yoga
It’s very similar to the list of 63 strings that Donuts committed to the first round of auctions, which was under-subscribed by its rivals.
The additions since then are: .broker, .casa, .data, .deals, .dog,. expert, .lawyer, .life, .loans, .place, .property, .rent, studio, .website, .world and .yoga.
This list does not include the six gTLDs that were settled in the first round, for obvious reasons, but the following strings have also been removed: .forsale, .juegos, .marketing, .media, .sale.
Some of those appear to have been removed because Donuts has already won the contention set due to withdrawals.
The list still includes many in which Donuts is in a contention set with Uniregistry, which has previously said it would not participate in private auctions due to legal concerns.
Innovative said recently that over 100 applications had been committed to the August 13 auction.
It had previously said that the over 40 strings being applied for by applicants that had participated in the first auction had also been committed.
The deadline for committing to the auction is August 5.