It’s not the billion-dollar bonus for Verisign.
As expected, ICANN has agreed* to let Verisign (NASDAQ: VRSN) increase prices on .com domain names starting this year.
The U.S. government had already agreed to the price increases, but these increases aren’t included in Verisign’s current agreement with ICANN that runs for four more years. So Verisign had to go back to ICANN and ask it to renegotiate the contract to add the increases now.
ICANN was always going to roll over rather than try to protect domain registrants at the risk of a lawsuit.
But ICANN did more than just allow the price increases. Verisign is going to pay it some extra cash, too.
I predicted this would happen. In my 2019 predictions episode published a year ago, I said:
“I expect Verisign to offer some sort of additional payment to ICANN to incentive it to renegotiate the contract. Remember, ICANN has a budget hole it needs to fill and I’m sure it would much prefer to get a few million dollars extra from Verisign each year than having to cut staff.”
That’s what happened. The exact number is $4 million a year for five years, which will plug the budget gap nicely.
Of course, I have a problem with the price increases in general. But that was already written.
It’s the $20 million payment that makes this look dirty and gives fodder to ICANN’s critics. The companies ICANN regulates (and yes, I’m going to use that word) fund ICANN. And they can chip in a little extra when needed.
ICANN should cut its costs rather than take this handout from Verisign.
* There’s a comment period, but we already know how much deference ICANN is going to give to the community’s input.
“ICANN should cut its costs rather than take this handout from Verisign.”
Forget about the impeachment hoax, this right here is the real quid pro quo. Shameful.
Unhappy with their stalled attempt at a koup, the Deep State is shifting their attention away from the Impeechment Hoax and on to helping out Verisign. Next they’ll be coming after your gunz…
>The companies ICANN regulates (and yes,
>I’m going to use that word) fund ICANN.
Looked at a little differently, its a partnership …..
That is corruption pure and simple !
Pay us $20M and we will allow you to make billions on the back of those stupid registrants who have no other choice than paying.
When are the DoJ and DoC going to stop this mess and put the .COM contract for bid ?
I understand most domain investors want ICANN to regulate prices on .com as it effects their bottom line , but you do not want ICANN in the price regulation business. Full stop , they are not equipped for it and is not their job.
You should really be focused on the US Government and DOJ and DOC. They are the ones that limited the last price increases and the only ones who could do it again.
As for ICANN cutting costs, that is never going to happen as it is the curse of non-profits. They have a use it or lose it mentality when it comes to funding, so they are going to spend every last dollar or else they will have less to spend in the next year. Plus there is no incentive as there are no profits or profit sharing or shareholders so why cut costs
How is this legal? Backtracking on a contract to cover your $65 million budget shortfall (same as the NCAA approx)? Its one things to increase the pricing, etc. its another to allow them to pay extra to speed it up.. Why is no group or network doing anything about this stuff as it has to be illegal or investigated.
What will be the price of a .Com domain name.
Which one?
This is absolutely fair and reasonable that Verisign plug the whole in their regulator’s budget.
Come on Andrew how else do you expect ICANN to pay for those little trips to Cancun?
Money doesn’t grow on trees you know!
Good it’s over .No more whining
over price increases and payouts.
Congrats on your prediction!
May want increase to fund .web
launch.
Even though ICANN relevance is questionable,
ICANN followed thru on DOC agreement and got paid to do it.
Transparency ?
Domainers will “roll over”
with ICANN.
1007%+ profits too sweet to pass on.
Some will buy more verisign stock.
Some will buy .Web domains.
If your holding Verisign or Ethos tlds, stock, your a “partner” just like ICANN, Warren Buffet.
If your an American tax payer your a DOC partner.
One big happy family.
If reg lengths increase to avoid cost increase will drops slow for a while or will drops increase short term?
Don’t see any meaningful boycott if at all. Domainers will always be a tiny group with no effect.
Sorry, your just never going to be a valued “partner”. Others will join to take your place.
Appreciate your gains and find new ways to play or play someone elses game.
Cheers