Displaying archives for the month of "October 2014"
.Co acquisition helps boost revenue at Neustar.
Neustar reported third quarter earnings after the bell today.
The company, which operates .us, .biz and .co, reported a 7% lift in revenue and a 1% increase in net income compared to the third quarter of 2013.
A big growth driver was the addition of .Co, which the company acquired in March. .Co added $4.4 million to the revenue line during the third quarter.
Neustar originally reported the purchase price of .Co as $109 million. It has since increased that for accounting purposes to $115.1 million based on working capital accounts at the time of acquisition; this is still a preliminary number. The deal also included a performance bonus of up to $6.0 million.
Why did losers not value the domain name as high as the winner?
Let me start by saying I’m not a big fan of the idea of community priority and similar mechanisms for determining which applicant gets a particular top level domain name.
But I’ve also been thinking lately about the auction process and its affect on the long term health of new top level domain names.
When an auction is used to resolve a new top level domain name contention set, the company with the highest perceived value of the domain name gets it.
That makes sense. But does it mean the other applicants were all wrong in their calculations of how much the TLD was worth?
Consider a five-way auction for .something. Presumably, every applicant ran calculations ahead of the auction to figure out how much it was worth. The auction ends with just one of them victorious, meaning that only one of the applicants calculated the value to be greater than the closing price.
Did the other four applicants make an error in their calculations? Or did the single firm that won make an error?
Out of the five, only one had projections high enough to justify the price. That’s a bit scarey for the future of the top level domain name at issue.
Yes, I understand a lot more goes into it. A TLD could be worth more to a company that has a direct connection to a related industry. Some applicants have greater efficiencies and channels to market. Some applicants have a lot more money to play with and can take greater risks.
At the same time, if I won a five-way race, I’d have reason to doubt my forecast.
Company is spreading a lot of incorrect information about domain names.
I was rather amused when Infibeam, the Indian ecommerce company behind .ooo, announced its bold ambitions for the domain name last month. I figured it was just a publicity stunt.
Kevin Murphy called the company’s sales targets including millions of first year registrations “batshit crazy”.
I filed Infinbeam in the “PR stunt” file, or perhaps the “delusional” file.
Then yesterday I read a The Economic Times article that says Infibeam’s CEO told it “all 34,000 global brands registered with the Trademark Clearing House from over 100 countries have purchased the dotooo domain name from Infibeam”. Click here to continue reading…
If you thought “Fish on a Bus” was weird, wait until you see “Bee in a Bar”.
Last week Verisign released videos under its new marketing campaign “Make Your Idea Internet Official”.
The videos have been described in a number of ways, with “creepy” being one of them. Yeah, “Fish on a Bus” is certainly creepy.
Both videos have soared to 300,000 views on YouTube. I have no idea how Verisign is promoting these videos and if it is buying views. But the comments on them seem authentic…they’re as stupid as most comments on YouTube.
Anyhow, Verisign published a couple more videos in the series. Including one in which a woman sleeps with a bee. Seriously. They’re worth watching: Click to continue reading…
…and 98% of sales were .com.
Domain Holdings’ outbound domain name sales machine continued to churn last quarter, with the company selling $9.55 million worth of domains in Q3.
That’s down slightly from the $9.9 million it sold in Q2, but that quarter included a $5.0 million sale. The biggest transaction in Q3 was $2.7 million.
And compared to Q1…it’s up nearly 3x.