Archive for October, 2009


Friday Domain News Bytes

Quick news updates before the weekend.

It’s the Friday before Halloween and there’s a lot of domain news to report. I’ll be taking off early today to go to my daughter’s Halloween school carnival (she’s dressing up as a Flamingo), so here’s a condensed version of all the news that’s fit to print.

IDN TLDs are coming! ICANN’s board has approved the fast track IDN country code domain name process. Here’s what you need to know:

1. These are the first top level domain names to allow non-Latin characters at the top level (many allow second level non-Latin characters already).

2. This only applies to a limited number of new country code domain names. Probably 20-30.

3. Some countries may give existing ccTLD holders rights to the new IDN ccTLD, but not all.

4. This will not affect existing gTLD domain names, such as .com.

ComWired has released a new user interface. ComWired, which lets you send internet traffic to different destinations based on the visitor’s geo location, has released an improved user interface. Check it out.

When will Moniker synchronize its whois data reminders? Really, it’s annoying getting a whois accuracy reminder every couple days. Why can’t it send out one a year like the other registrars?

It’s Extended Auction time. Check out both the extended Rick Latona auction and Moniker auction (over at SnapNames).



Photon Group Submits Formal Takeover Offer for Dark Blue Sea

Group submits plan to takeover Fabulous’ parent company.

FabulousPhoton Group has submitted its formal share purchase statement (pdf) for its planned purchase of outstanding Dark Blue Sea shares. Dark Blue Sea is the parent company of domain name registrar and parking company Fabulous.

Photon owns almost 30% of the outstanding shares in the company. In a letter to shareholders, Photon Group Executive Chairman Tim Hughes says the offer represents a premium to the average share price prior to the company’s buyout announcement. It also represents 16 times Dark Blue Sea’s FY2009 earnings before interest, taxes, and impairment.

Photon gives a number of reasons for shareholders to sell out, including:

Under current management there has been a significant deterioration in the business and future profitability is uncertain. In the last two years, there has been significant declines in the profitability and share price of DBS. In FY2009, reported net profit after tax fell by 74%. This followed a 24% decline in reported net profit
after tax in FY2008…

Notwithstanding this poor performance, the DBS Board has not provided DBS Shareholders with any clear direction or strategy for the recovery of the business. Further, DBS management has an unproven track record at executing any alternative business plans required for the recovery of the business.

The offer will close sometime in December, provided that Photon is able to purchase enough shares to own 50.1% of the company and there are no major occurrences.

If Photon acquires a controlling stake in the company, it plans to insert two Photon employees onto the board of the company. It will then conduct a review of the business “for the purpose of identifying ways in which DBS can enhance its business and the underlying value of its domains.”

DBS management is asking shareholders to take no further action until it has a chance to review the offer details.



Google Encroaches on Lead Gen Companies

Google gets into the lead gen business through Adwords.

Google has launched a new Google Adwords offering that directly competes with mortgage lead generation companies such as Lending Tree.

The new offering, dubbed Comparison Ads, allows Google visitors to compare offers from various mortgage providers. They can then fill out a quote lead form or call the mortgage company directly using a specially encoded phone number. Google charges the mortgage companies each time someone submits the lead form or calls.

Comparison Ads

This puts traditional lead gen companies such as Lending Tree and Quinstreet in a tough spot. They depend on Google for both organic and paid traffic. Now Google is competing with them.

So far it’s just a test and only for the mortgage industry. But I expect Google to quickly expand this to other verticals.

On the positive side, it’s possible that Google would integrate this type of ad into a domain parking page, which could result in higher payouts.



WalMart Goes After PeopleofWalMart.com Typo

Walmart files for domain arbitration, but not against the actual web site.

PeopleofWalmart.comRemember how a couple weeks ago I wondered how long it would be before Walmart would file a domain arbitration case against PeopleofWalmart.com?

Well, there was an interesting twist today. Walmart filed a case, not against the actual PeopleofWalmart.com site, but against a typo of it: PeapleofWalmart.com (notice the a instead of o).

It should be a slam dunk case for Walmart, given that the registrant can’t show any legitimate use. He also registered WalMart-Winners.com, and both are parked.

Of course, if Walmart went for the actual PeopleofWalmart.com through the UDRP process, it should lose the case.

As another interesting aside about the web-meme-of-the-moment, when I visited PeopleofWalmart.com today, all of the ads were for Walmart.



ICANN May Consider Pre-Applications for New Top Level Domain Names

New TLD backers to propose plan for parallel processes.

There are a lot of uncertainties about new top level domain names, including how many applications will actually be submitted and what they will be for. This affects a number of things — root scaling, trademark concerns, and geo TLD concerns. For example, if it turns out only 50 TLD applications will be received, root scaling might not be an issue.

With that, it looks like the community of likely new TLD applicants is pushing for some sort of “pre-application” process. Although details are forthcoming, this would allow applicants to submit a basic application with a fee. The application may or may not work its way completely through the approval process while other issues — such as trademark protection — are still being worked out.

The first public mention of such a plan surfaced during an ICANN session about new TLDs a few days ago. A couple days later, during the public forum, Minds + Machines’ Jothan Frakes said that he was working to introduce such a plan in the next few weeks:

…The applicants, in a like manner to the IRT, are going to come together to collaborate on solutions on a way forward.

We have some ideas whereby an applicant can pay a fee and begin the review of information, which can be done now while issues — very important issues such as IRT, URS, root scaling, and economic studies
are being undertaken. In this way we can move forward on issues in parallel. And in this way applicants can go back to their constituents, their stakeholders, communities, and investors with positive news while ICANN staff will gain information about the universe of applicants who will be bringing discussions about public
morality, root scaling, rights protection, and other matters out of the theoretical and into the practical realm. We will be presenting our ideas to ICANN staff and board through the normal channels in the
coming weeks…

ICANN Chairman Peter Dengate-Thrush said he understands the concerns of new TLD applicants and that ICANN will consider their proposal:

We’re also very concerned. We’re aware that delay favors incumbents. We’re aware that delay is costly and may, in fact, deprive us, if it goes on for much longer, of the very innovation that this project was intended to help stimulate.

On the other hand, delay is caused by the fact that we have to do this very carefully. We have a specific affirmation in the Affirmation of Commitments that we’ll take into account the public
interest and so on.

So this is a balancing exercise for the board. There’s no intention to delay. We just have to make sure we do it properly.

We also are aware of some of the content of the proposal that you’ve been talking about. There’s been some very effective corridor conversations going on this week about how we might move forward with
an application kind of process that would give us a lot of information about likely applicants, likely strings, and things that can go forward.

And, provided that can be done without commitment and all the usual warnings, we’re happy to explore that kind of forward thinking. So thank you for that.

Without knowing all of the details, this is a plan I can cautiously support. It would be nice to see exactly what we’re dealing with here as far as the number and type of applications. That could assuage a lot of fears. In order to do this, the pre-application process must be mandatory. In other words, all companies wishing to apply must submit a pre-application. Otherwise it doesn’t tell us much about how much scale and potential issues we’re dealing with.


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