Two more new gTLDs — .wedding and .green — have been auctioned off, with proceeds amounting to millions of dollars.
Top Level Domain Holdings said in a press release that it won .wedding and lost .green, which cost it a net $2.23 million.
That’s the amount it paid for .wedding, minus its share of the .green winning bid and its ICANN refund for withdrawing its .green application.
I don’t think we can infer the exact sale price of .wedding from that, other than to say that it was definitely over $2.2 million.
TLDH did not say who won the .green auction. The only other remaining applicants, after Dot Green’s withdrawal last year, were Rightside and Afilias. Neither has withdrawn their applications yet.
In the .wedding auction, conducted by Applicant Auction, it beat rival portfolio applicants Donuts and What Box?
Minds + Machines CEO Antony Van Couvering reckons the company’s forthcoming .london new gTLD could see as many as 200,000 domains under management, just from small businesses.
He told DI the target is realistic following the results of a YouGov survey of 1,001 London-based small businesses, which found that 26% were “likely” to buy a .london name.
From this, YouGov extrapolated that there are at least 218,140 companies ready to register a .london.
Van Couvering would not put a deadline on hitting the ambitious goal, but said that registry Dot London Domains and M+M as technical provider are “going to do our best to make the launch well-publicized and successful.”
Judging by the gTLD’s official web site, which carries quotes from the likes of Selfridges, the London Eye and Carnaby Street, there’s been a fair bit of outreach to recognizable London brands already.
Dot London backer London & Partners is the Mayor’s office’s official PR agency, so you can imagine there’s going to be some decent marketing resources thrown at marketing.
The .london gTLD is due to launch April 29 this year, according to the registry.
It’s been contracted with ICANN since November 14, so is running well over the average time to delegation of 70 days.
Top Level Domain Holdings has raised £21 million with an institutional investor share placement to help it win some new gTLD contention set auctions.
Its total war chest following the $33.6 million-ish placement will be about $63 million, albeit with $15 million of that earmarked for a single, as-yet-unspecified auction.
The company is currently in 43 contention sets, most of which it apparently wants to resolve via private auction. TLDH said in a statement:
The Company believes private auctions provide a significant opportunity for the Company both to increase the number of high-value gTLDs within its portfolio and to generate cash from those gTLDs which it chooses to relinquish. Under the private auction process, the winning bid is divided equally and paid to the losing applicants net of the auctioneer’s fees.
As part of TLDH’s transition from a revenue-free penny stock to a trading company, it’s going to change its name to Minds + Machines Limited, via a reverse takeover of its subsidiary of the same name.
The company said the move will help with “stakeholder communications and branding”.
Finally, TLDH said that founding director Guy Elliott is to leave its board of directors and be replaced by new non-executive director Elliot Noss. Noss is of course CEO of rival registry/registrar Tucows.
Top Level Domain Holdings has signed up 12 registrars to sell its forthcoming gTLDs, seven of which are to also use its recently announced OPEN pre-registration platform.
While TLDH is operating vertically integrated registrar/registrar business, Minds + Machines it’s also built a pre-registration service that it wants other, higher-profile registrars to access.
OPEN, for Online Priority Enhanced Names, allows pre-registrations to be purchased on a more-or-less buy-it-now basis. Names blocked or claimed in Sunrise will be refunded.
The company also said in a market update today that 12 registrars have signed Registry-Registrar Agreements, and that it expects it first new gTLDs to launch in the first quarter 2014.
Top Level Domain Holdings made less than $12,000 in the first half of the year, but says its new gTLD business may start generating revenue in the fourth quarter.
In its interim financial results, published this morning, the company also revealed that it plans to launch its own domain name registrar and, via a partnership, web site building tools.
Revenue for the six months to June 30, which was almost all due to monetization of its second-level domains portfolio, was £7,000 ($11,295), compared to £346,000 ($558,000) a year earlier.
TLDH’s loss for the period grew to £1.8 million ($2.9 million) from £1.5 million ($2.4 million).
But in a lengthy statement chairman Fred Krueger assured investors that he is “confident” that the long process of getting TLDH’s applied-for gTLDs to market is drawing to a close.
Looking forward, I am confident that ICANN will broadly continue to sign contracts in line with the timelines we announced in July 2013, allowing .LONDON potentially to begin its launch and initial marketing as early as the first half of 2014. Given the recent signing of contract between .KIWI and ICANN, we may see our first revenues as a back-end registry operator as early as Q4 2013, and revenue from the sale of domain names from our first wholly-owned new gTLD by Q1 2014.
The company currently has interests in 25 uncontested gTLDs and has applied for 48 more, according to Krueger.
With more private and ICANN new gTLD auctions coming soon, TLDH has cash on hand of £7.4 million ($12 million).
Given the average selling price of a new gTLD is currently $1.3 million, there’s seems to be little chance of TLDH securing its entire portfolio of applied-for strings without additional funding.
Losing private auctions could be a way to generate cash to win more than the nine auctions that its $12 million implies, however.
Krueger also revealed TLDH’s revenue plans beyond its Minds + Machines registry services business.
As we enter into this final phase, we are pursuing other potential revenue-producing ventures by developing our own registrar, and, in cooperation with the website-building company Needly, providing a clean path for users to get a complete online solution – a web presence and email, as well as a domain name.
Krueger is also CEO of Needly, which makes a web content management platform.