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Donuts makes six-figure .news sale to dangerous conspiracy theorist

Donuts has sold a package of “platinum” .news domains to a network of dubious news sites peddling what many describe as dangerous pseudo-scientific nonsense.

A company called WebSeed acquired science.news, food.news, health.news, medicine.news, pollution.news, cancer.news and climate.news from the registry for an undisclosed sum in the six-figure range last December, Donuts said.

It appears that the same buyer has acquired several other presumably non-platinum .news domains, including vaccines.news, nutrients.news, menshealth.news and emergencymedicine.news

The sites have already been developed, incorporating a back catalog of “news” content from other sites under the same ownership, and Donuts reckons searches for “climate news” and “science news” already return the matching domains prominently (they don’t for me, but Google can be fickle).

Unfortunately, the domains seem to have been sold to a leading purveyor of misinformation and conspiracy theories.

That’s right, climate.news now belongs to a climate change denier, vaccines.news belongs to an anti-vaxxer, and medicine.news belongs to somebody who values alternative remedies over science-based medicine.

As far as I can tell, pretty much all of the content on the network of .news domains comes from Natural News, the controversial site owned by “Health Ranger” Mike Adams.

Natural News has been fingered as an “empire of misinformation” and a leading contributor to the “fake news” crisis that has been blighting society for the last few years.

Check out climate.news today to be treated to Adams’ theory that climate change is nothing but a conspiracy peddled by the UN and the mainstream media.

Over on vaccines.news, you’ll find a scaremongering story about how the measles vaccine has killed more people than measles over the last decade.

(Gee, I wonder why measles isn’t killing anyone any more? Could it be that we have a fucking vaccine?).

On medicine.news, Adams himself writes of “PROOF that vaccines target blacks for depopulation”.

And at pollution.news, you’ll find any number of articles discussing the “chemtrails” conspiracy theory.

To be perfectly honest, I’m not scientifically literate enough to debunk most of the content on these sites, but I know quackery when I see it.

Donuts’ press release goes to suspicious pains to point out that the sites’ content is “thoroughly researched” and advertising is “limited and relevant to the sites’ content”.

In fact, the advertising seems in most if not all cases to lead back to Adams’ own stores, where he sells stuff like water purifiers, dietary supplements and alternative medicines.

The Donuts press release also quotes the founder and CEO of WebSeed, one “Mike Texas”.

Now, I have absolutely no evidence whatsoever that Mr Texas is not a real person.

But.

Whois records (remember those?) show that the original registrant of science.news was one Mike Adams of WebSeed LLC, and WebSeed.com, while under privacy for some years, was originally registered to Adams’ Taiwan-based company.

It goes without saying that Donuts, as a neutral registry, is under no obligation whatsoever to police content on the domains it sells. That would be a Bad Thing.

But I can’t help but feel that .news has the potential to take a big credibility hit due to the content of these sites.

Imagine a fox, buying up all the good .henhouse domains. It’s a bit like that.

MMX rejected three takeover bids before buying .xxx

MMX talked to three other domain name companies about potentially selling itself before deciding instead to go on the offensive, picking up ICM Registry for about $41 million.

The company came out of a year-long strategic review on Friday with the shock news that it had agreed to buy the .xxx, .adult, .porn and .sex registry, for $10 million cash and about $31 million in stock.

CEO Toby Hall told DI today that informal talks about MMX being sold or merged via reverse takeover had gone on with numerous companies over the last 11 months, but that they only proceeded to formal negotiations in three cases.

Hall said he’d been chatting to ICM president and majority owner Stuart Lawley about a possible combination for over two years.

ICM itself talked to four potential buyers before going with MMX’s offer, according to ICM.

Lawley, who’s quitting the company, will become MMX’s largest shareholder following the deal, with about 15% of the company’s shares. Five other senior managers, as well as ICM investor and back-end provider Afilias, will also get stock.

Combined, ICM-related entities will own roughly a quarter of MMX after the deal closes, Hall said.

ICM, with its high-price domains and pre-2012 early-mover advantage, is the much more profitable company.

It had sales of $7.3 million and net income of $3.5 million in 2017, on approximately 100,000 registrations.

Compared to MMX, that’s about the same amount of profit on about half the revenue. It just reported 2017 profit of $3.8 million on revenue of $14.3 million.

There’s doesn’t seem to be much need or desire to start swinging the cost-cutting axe at ICM, in other words. Jobs appear safe.

“This isn’t a business in any way that is in need of restructuring,” Hall said.

He added that he has no plans to ditch Afilias as back-end registry provider for the four gTLDs. MMX’s default back-end for the years since it ditched its self-hosted infrastructure has been Nominet.

The deal reduces MMX’s exposure to the volatile Chinese market, where its .vip TLD has proved popular, accounting for over half of the registry’s domains under management.

It also gives MMX ownership of ICM’s potentially lucrative portfolio of reserved premium names.

There are over 9,700 of these, with a combined buy-now price of just shy of $135 million.

I asked Hall whether he had any plans to get these names sold. He laughed, said “the answer is yes”, and declined to elaborate.

ICM currently has a sales staff of three people, he said.

“It’s a small team, but their track record is exceptional,” he said.

The company’s record, I believe, is sex.xxx, which sold for $3 million. It has many six-figure sales on record. Premiums renew at standard reg fee, around $60.

With the ICM deal, MMX has recast itself after a year of uncertainty as an acquirer rather than an acquisition target.

While many observers — including yours truly — had assumed a sale or merger were on the cards, MMX has gone the other route instead.

It’s secured a $3 million line of credit from its current largest shareholder, London and Capital Asset Management Ltd, “to support future innovation and acquisition orientated activity”.

That’s not a hell of a lot of money to run around snapping up rival gTLDs, but Hall said that it showed that investors are supportive of MMX’s new strategy.

So does this mean MMX is going to start devouring failing gTLDs for peanuts? Not necessarily, but Hall wouldn’t rule anything out.

“Our long-term strategy is ultimately based around being an annuity-based business,” he said. He’s looking at companies with a “strong recurring revenue model”.

About 78% of ICM’s revenue last year came from domain renewals. The remainder was premium sales. For MMX, renewal revenue doubled to $4.8 million in 2017, but that’s still only a third of its overall revenue (though MMX is of course a less-mature business).

So while Hall refused to rule out looking at buying up “struggling” gTLDs, I get the impression he’s not particularly interested in taking risks on unproven strings.

“You can never say never to any opportunity,” he said. “If we come across and asset and for whatever reason we believe we can monetize it, it could become an acquisition target.”

The acquisition is dependent on ICANN approving the handover of registry contracts, something that doesn’t usually present a problem in this kind of M&A.

CentralNic spends $3.3 million on .com portfolios

Kevin Murphy, January 9, 2018, Domain Sales

CentralNic has splashed out £2.5 million ($3.3 million) to bolster its portfolio of domain names for the secondary market.

The company said in a brief statement today that it acquired an unspecified number of domains across “a number of portfolios”. The sellers were not disclosed.

The names were all in .com.

CEO Ben Crawford said the names were acquired “at an attractive discount to current market rates”.

The deals mean London-listed CentralNic might be able to continue to prop up its recurring revenue (registry/registrar) numbers through the sale of premium names, something it still needs to do if it wants to show investors a pleasing growth curve.

That’s assuming it can sell the names at a profit, of course.

Some call this the premium domain “hamster wheel”.

CentralNic and .CLUB reveal premium sales

Kevin Murphy, November 8, 2017, Domain Services

CentralNic and .CLUB Domains have both revealed sales of premium domain names over the last several days.

CentralNic said yesterday that it has sold “a number” of premiums for $3.4 million.

The names are believed to be from its own portfolio, rather than registry-reserved names in any of the TLDs it manages. The company did not disclose which names, in which TLDs, it had sold.

The sale smooths out potential lumpiness in CentralNic’s revenue, and the company noted that the sales means that recurring revenue from its registrar and registry business will become an increasing proportion of its revenue as its premium portfolio diminishes.

Last week, .CLUB announced that it sold $380,793 of premium .club domains in the third quarter. That was spread over 452 domains.

The big-ticket domains were porn.club and basketball.club, sold by the registry for $85,000 together.

The Q3 headline number was a sharp decline from the Q2 spike of $2.7 million, which was boosted by auctions in China.

The company published a lot more data on its sales on its blog, here.

ZACR to delete 12,000 .za domains next week

Kevin Murphy, August 24, 2017, Domain Registries

South African ccTLD registry ZACR is to delete more than 12,000 domains, many of them English dictionary words, ending in .org.za next week.

That’s more than a third of the current count of .org.za domains, which stands at about 33,000 today.

The list includes many English dictionary-word domains very possibly worth more than the standard registration fee, such as sex.org.za, accountant.org.za, comedy.org.za, vodka.org.za, casino.org.za and cash.org.za.

The domains will be deleted and then become available for first-come, first-served registration on September 1.

The current registrants have had fair warning. The company migrated to a new EPP-based registry back-end a few years ago and told its customers they had to migrate to an accredited registrar.

A year ago, it suspended 15,420 domains, cutting off their ability to resolve in the DNS, as way to bring the impending deletion to their owners attention, but since then only 2,394 suspended domains have become compliant with the new rules.

That means 12,677 .org.za domains face the chop Friday next week, unless their owners mount an eleventh-hour rescue operation.

ZACR has published a full list of the soon-to-be-deleted names here

The .org.za space is far less popular than commercial counterpart .co.za, which has over a million registered names.