Let’s cut through the clutter and falsehoods.
A lot has been said and written about Internet Society’s (ISOC) sale of Public Interest Registry, the group that runs .org, to Ethos Capital. Some of it is true, some of it is false, and some of it is up to interpretation. This goes both ways; ISOC and Ethos have some bad (or at least misleading) talking points, but much of the fuss on the internet is wrong or based on questionable data.
Here’s what you need to know.
The deal solidifies ISOC’s financial future
It’s hard to debate that this deal doesn’t make sense for ISOC, at least financially. It’s trading in an annual revenue stream for an endowment. As long as it has a reasonable way to invest that endowment, it should be able to generate steady cash flow going forward.
While the domain name business has been on a steady, mostly upward trajectory for .org, there is certainly risk that this could change in the future. I understand why ISOC views this as a good financial move for its organization. I’m sure it knew it would get some pushback, but it decided that the opportunity was too good to pass up.
PIR is not cash-strapped and and can easily reinvest in .org
One of ISOC’s and Ethos’ talking points is that, because PIR has to give its profits to ISOC, it is cash-strapped and can’t reinvest in the registry or new products and services.
There are two questions at play here: (1) is .org declining? and (2) is PIR cash-strapped? Click here to continue reading…