Sedo has acquired RevenueDirect, Dotster’s domain name parking service.
Sedo has acquired domain name parking company RevenueDirect.
For established domain parking companies, acquiring another domain parking company usually doesn’t make sense. Parking companies rarely have long term contracts with customers, so the acquirer risks seeing acquired customers leaving the ship after a takeover. But this acquisition makes sense for a couple reasons:
U.S. Dominance: For a long time, Sedo has been known as the dominant domain parking company and Google partner outside the United States, while DomainSponsor has the Google lock inside the United States. With this purchase Sedo will bolster its position in the United States.
Higher Revenue Share: By acquiring more customers, Sedo can increase its revenue share rate with Google. This will put it in a position to offer more to domainers, improving its overall positioning. Further, Google domain parking contracts include tiers with different revenue share rates. This acquisition may push it into a higher tier.
Registrar Affiliation: Call it a bonus, but Sedo’s domain parking purchase comes with a new deal with the affiliated registrar, Dotster. It will send Dotster customers to Sedo for both domain parking and domain purchases.
According to RegistrarStats, Dotster is the 15th largest domain name registrar with over 1 million domains under management. The domain server ns1.revenuedirect.com has over 225,000 domains according to DomainTools.
This may not be Sedo’s last domain parking company acquisition…