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TheDomains.com

Donuts Offers To Buy All Of Rightside new gTLD’s For $70 Million Cash

June 24, 2016 by Michael Berkens

Donuts Inc., publicly announced its interest in acquiring Rightside Group, Ltd.’s (NAME) entire registry of generic top-level domains (gTLDs, also known as domain extensions) and related assets for $70 million in an all-cash deal.

According to a press release out today, Donuts said “this move is in keeping with Donuts’ stated strategy of expanding its selection of not-com domain extensions, such as .movie, .LTD, .agency, .email, .school, .group, and many more, each providing a more descriptive and creative means for big brands, entrepreneurs, and dreamers alike to brand their businesses, products and services. Donuts already leads the industry, having secured 196 domain extensions, and is best positioned to market these assets by driving industry consolidation.”

In my opinion it would seem like its a deal Rightside would decline, since it recently rejected a $5 Million cash just a short time ago for just 4 of Rightside’s new gTLD extensions from Daniel Negari the CEO of the .XYZ registry.

In the $5 Million dollar offer, the new gTLD strings had a total of less than 15,000 registrations.

Here were the four and the number of registrations at the time:

.Army 1,131

.Vet 5,180

.Dentist 2,792

.Dance 4,878

Rightside currently has 40 new gTLD’s (including .games which is in the cue to launch).

According to ntldstats.com Rightside 40 new gTLD’s have 543,820 domain name registrations, so the $5 million dollar rejected offer was new gTLD’s with just over 15,000 registrations or $333 a registration, while the $70 Million dollar offer amounts to about $133 a domain registration.

Rightside closed yesterday at $9.06 down $.16 and has a market cap of over $173 Million.

Filed Under: Domain Industry, Domains, Donuts, New gTLD's, Rightside

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

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Comments

  1. Anonymous says

    June 24, 2016 at 9:28 am

    As a gTLD investor, I’d love to see this happen. Rightside is a crappy company.

  2. cmac says

    June 24, 2016 at 9:33 am

    smells of publicity stunt

    • Jon says

      June 24, 2016 at 9:56 am

      Interesting comment, I find it crazy to think that you could drop that kind of cash on the other extensions already and get a decent return on the investment. sure I see all the add on services after the domain registration but to that extent? Maybe in 7-10 years or so?

  3. Trevor says

    June 24, 2016 at 9:39 am

    These two are so intertwined already, very very fishy, sec kinda stuff

  4. Francois says

    June 24, 2016 at 10:04 am

    Taryn, don’t sell !!!

  5. Meyer says

    June 24, 2016 at 11:08 am

    (back of napkin analysis)

    If RS spent $20 mil (16 plus game??) for the gtlds, plus spent $ 5 mil (??) on marketing, I wonder how long it will take RS to make $ 45 mil in profit? ( 70 – 16 – 5)

    • Rubens Kuhl says

      June 24, 2016 at 12:46 pm

      Note also that Donuts TLDs are operated by the Rightside back-end, so all TLDs would keep generating profits for them.

      • David Thornton says

        June 25, 2016 at 12:38 am

        gTLDs can and will change BERO/RSP in the future. Look at MMX moving theirs to Nominet for one example.


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