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Will VeriSign change its name?

VeriSign’s $1.3 billion sale of its SSL business to Symantec yesterday means not only that the company will be almost entirely focussed on domain names, but also that it will no longer “sign” anything.

The word “VeriSign” will cease to describe what the company does, so will it change its name?

The idea could make sense, given that the services Symantec bought are all about trusting the VeriSign brand, and Symantec has acquired certain rights to use that brand.

Under the deal, Symantec is allowed to use the VeriSign name in authentication services such as the VeriSign Trust Seal. The company plans to incorporate “VeriSign” into a new Symantec trust logo.

VeriSign boss Mark McLaughlin said on a conference call yesterday that Symantec is buying certain VeriSign trademarks, such as Thawte and GeoTrust, but that VeriSign will stay VeriSign.

Symantec will be able to use the VeriSign brand in its logos for a “transition period of time over a number of years”, McLaughlin said.

On the one hand, there’s a potential for a certain degree of confusion that might persuade VeriSign to brand itself afresh. On the other, corporate rebranding is not cheap.

I suppose, if it does choose to rename itself, it had better hope that its first choice of .com is available.

VeriSign poised to sell SSL business to Symantec

Reliable news sources including the Wall Street Journal and Reuters are reporting that VeriSign is on the verge of offloading its market-leading SSL certificate business to Symantec for over $1 billion.

The sale would be the latest in a series of spin-offs that started in 2007, highlighting the company’s renewed focus on domain names.

VeriSign spent many years acquiring a bunch of companies in tenuously related markets – deals that never really made any sense to me – and the last few years selling them off again.

But SSL is not really in the same category as VeriSign’s bizarre forays into, for example, the Crazy Frog ringtone company. It’s the business the company was founded on when it was spun out of RSA Security 15 years ago.

It’s called VeriSign for a reason.

But offloading the SSL business would make sense. One of the reasons VeriSign bought Network Solutions ten years ago was the obvious retail synergies between domain names and SSL certificates – customers could buy both at the same time.

That synergy was diluted when VeriSign spun the NSI registrar business out as a separate company three years later, creating the vertically separated domain name market we know today.

Symantec, with its fingers in the enterprise and home/small business pies, might be able to make a better crack at the SSL game.

So is this bad news for SSL’s current silver medal holder, Go Daddy?

Possibly. Symantec is a force to be reckoned with – only marketing prowess could explain why so many people use Norton.

Of course, these news stories could be nonsense.

But my guts say they’re probably based on the same kind of leaks that companies often float to the press, to see what the markets do, when they’re in the final stages of negotiations.

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