Daniel Negari the CEO of the .XYZ registry just offered Rightside (NAME) $5 Million dollars cash to buy four of their new gTLD extensions; .Army, .Vet, .Dentist, Dance.
The four extensions were uncontested, meaning Rightside did not have to buy them in an auction and got them for the $185,000 application fee per string.
The four extensions according to ntldstats.com have a total of less than 15,000 domain names registered.
The extensions subject to the offer (with the number of domain name registrations) are:
Rightside currently has a market cap of $157 Million based on today’s price of $8.19 a share, meaning this offer is equal to over 3% of Rightside’s market cap.
Here is the offer that appears on Daniel Negari’s blog at ceo.xyz:
“”Below you will find an offer to Rightside Group, Ltd. to purchase four of the under-monetized new gTLDs (generic top level domains) Rightside holds, including .army, .dance, .dentist and .vet, for $5,000,000.
I chose these four gTLDs, which currently have fewer than 15,000 domains registered, to highlight the tremendous value Rightside’s registry component holds.
These four gTLDs were great investments for Rightside, each costing only a $185,000 application fee ($740,000 in total), but they are not being capitalized on.
If Rightside accepts my offer, it will realize a profit in excess of $4,000,000.
We are an experienced, successful registry operator of 6 gTLDs directly and 3 in a joint venture. I am interested in many more of Rightside’s gTLDs for the benefit of my growing registry, XYZ, but figured I would break the ice with some of Rightside’s low revenue generating assets first. The below offer is valid until the end of business day on April 7, 2016.
Also, if there are any Registry Operators out there who are looking to sell their gTLDs, we are cashed up, and ready to do deals. You can reach me at https://ceo.xyz/contact/
Disclosure: I am individually a large shareholder and SEC 13-D Filer on $NAME. Filing this with the SEC shortly.”
A memorandum of understanding also appears on Mr. Negari’s blog which lays out the details of the offer.