A
Andrew Allemann
Guest
Company rebuffs offer for its new top level domain business.
Rightside (NASDAQ:NAME) has turned down Donuts’ unsolicited offer to buy its top level domain name operations for $70 million.
The offer was for all 40 of Rightside’s top level domains, such as .ninja and .rocks, and probably also included Rightside’s backend registry operations.
Rightside CEO Taryn Naidu said, “We believe Donuts’ proposal is an opportunistic attempt to acquire Rightside’s valuable portfolio of domain extensions with an undervalued price and in a manner that would not be in the best interests of Rightside shareholders.”
I outlined the case against accepting the offer in this week’s podcast, which I recorded before today’s news.
Rightside believes its future growth will come from new TLDs, and hopes for new TLD revenue of $50 million to $75 million a year in the not-too-distant future. The only reason I could see it accepting an offer to sell its new top level domain business is if it had a separate offer for the other part of its business.
When I asked Donuts CEO Paul Stahura in May when we could expect TLD industry consolidation, he said “When prices become more sane.”
Apparently, he believes $70 million is sane for Rightside, but Rightside doesn’t think so.
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The offer was for all 40 of Rightside’s top level domains, such as .ninja and .rocks, and probably also included Rightside’s backend registry operations.
Rightside CEO Taryn Naidu said, “We believe Donuts’ proposal is an opportunistic attempt to acquire Rightside’s valuable portfolio of domain extensions with an undervalued price and in a manner that would not be in the best interests of Rightside shareholders.”
I outlined the case against accepting the offer in this week’s podcast, which I recorded before today’s news.
Rightside believes its future growth will come from new TLDs, and hopes for new TLD revenue of $50 million to $75 million a year in the not-too-distant future. The only reason I could see it accepting an offer to sell its new top level domain business is if it had a separate offer for the other part of its business.
When I asked Donuts CEO Paul Stahura in May when we could expect TLD industry consolidation, he said “When prices become more sane.”
Apparently, he believes $70 million is sane for Rightside, but Rightside doesn’t think so.
© DomainNameWire.com 2016. This is copyrighted content. Domain Name Wire full-text RSS feeds are made available for personal use only, and may not be published on any site without permission. If you see this message on a website, contact copyright (at) domainnamewire.com.
Latest domain news at DNW.com: Domain Name Wire.
The post Rightside (unsurprisingly) says no to Donuts appeared first on Domain Name Wire | Domain Name News & Views.
Related posts:
- Donuts and Rightside release 6 new domains on Wednesday
- Donuts’ first new domain names are starting to drop…
- Donuts makes $70 million unsolicited offer for Rightside’s new TLD business
Continue reading...
