Archive for the ‘NAME’ category

Rightside Group (NAME) – A Quote And A Chart

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A quote and a chart, presented without comment.

With the two million total registration mark approaching for all new gTLDs, uptake for this program has been exceedingly strong overall. Most of our gTLDs have met or beat expectations to date. Internet users are voting with their wallets and their clicks, acclimating to a world in which specific, relevant domains support the development of meaningful online identities.

– Paul Stahura, Donuts co-founder and CEO (source)

gTLD Growth


Demand Media (DMD) – The Times They are a Changin’

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“This is the most important and exciting change in the internet in a long, long time. Maybe since the beginning of the modern internet.”

– Ben Fried, Google’s Chief Information Officer (source)

Investors should take note every time a Google exec goes on record saying they are “incredibly excited” about something because most of the time, there’s a good reason for it. Which is why when I heard the above quote at Google’s I/O, I decided to dig in. And what I found was a truly great business being ignored by the market with a value creation catalyst just a few trading days away.

Let’s start at the bottom by walking through the modern domain registry business. There are 4 main constituents in the domain registry value chain:

Here’s a view of the marketplace:

Domain Registry Process

In terms of who gets what, the economic breakdown of every .com sold looks like this (average sales price is about $10 today):

As you can see, the closer you are to ICANN, the more value you capture. The registry operator is clearly king, keeping 78% of the economics from every .com sold.