Verisign Loses 15.9 Billion Dollars!

[WebCat]

Personally, I find it hard to have any sympathy!

Reportedly Verisign is selling or has sold Network Solutions. Just a few years back, they bought it for an astounding 16 BILLION dollars!

Reported sale price? 100 million, for an unbelievable net loss of 15.9 billion!

The buyer is a company called Pivotal Private Equity, a Phoenix-based investment firm. My guess is they know even less about domains and being a registrar than Verisign did.

Hey! Maybe in 3 years, NSI will be for sale for 1 million!

Here's the Washing Post Article:
http://www.washingtonpost.com/wp-dyn/articles/A37157-2003Oct16.html

Enjoy!
WebCat

 

[aguss]

Verisign made a HUGE mistake for taking over NSI.
Selling it was very much a good step.

JMO
Agus S

 

[domnet]

Originally posted by WebCat
Personally, I find it hard to have any sympathy!

Reportedly Verisign is selling or has sold Network Solutions. Just a few years back, they bought it for an astounding 16 BILLION dollars!

Reported sale price? 100 million, for an unbelievable net loss of 15.9 billion!

The buyer is a company called Pivotal Private Equity, a Phoenix-based investment firm. My guess is they know even less about domains and being a registrar than Verisign did.

Hey! Maybe in 3 years, NSI will be for sale for 1 million!

Here's the Washing Post Article:
http://www.washingtonpost.com/wp-dyn/articles/A37157-2003Oct16.html

Enjoy!
WebCat

You are ignoring the tons of money they made while they owned it.

 

[WebCat]

Originally posted by domnet


You are ignoring the tons of money they made while they owned it.

Yes. I'm sure they generated money, but I seriously doubt it was anything close to 16 BILLION! In fact, NSI has been bleeding domains and customers for several years.

Remember, a billion is a thousand million! That's a lotta cabbage!

 

[Steen]

I am sure they have lost alot more than 19B.

Not uncommon for a .com company, but:

In 00, thier stocks were over $100, now they are $10-$20

 

[aguss]

I think the name Verisign has been heavily damaged by NSI...

 

[mole]

This reminds of the good ol' days of Afternic and dotcom euphoria when the price of domains seemed to average $100,000

I remember the guy who owned media.com was hoping to get $750,000 for it. I think he sold to elequa for a lot lot less.

The market is just coming to terms with the reality of business bottom lines and a world gone insane.

 

[Domagon]

SAIC

Google that d

Ron

 

[Nexus]

I think everybody always loses sight of the fact that Verisign isn't selling everything they bought when they acquired NetSol. Not by a longshot.

In fact, if you were to weigh the value of Network Solutions as a REGISTRAR, and then weigh the value of Network Solutions as the REGISTRY for COM/NET domain names... I think it is really really clear which one is far more strategic and valuable as an asset. Acquiring Network Solutions gave Verisign $6 for every COM/NET extension sold, renewed, or transferred. After selling Network Solutions, this will still be the case.

Considering their plans with WLS and SiteFinder... somehow... I'm thinking shedding the registrar is really a drop in the bucket and probably a move that means more profits (less liability) for Verisign than any type of "loss". Most news services get really confused in that NSI was the name used for two different services under the same company.

People freely exchanged the name "Verisign" with "Network Solutions" all the time, to the point where they seemed synonmous. The "Registry's" name was changed to "Verisign Naming and Directory Services" (previously Verisign COMNET registry), instead of anything to do with Network Solutions a long time ago, but people forget and it all gets clouded over.

Considering all the rampant confusion, selling Network Solutions has probably resulted in a resounding cheer in the Verisign board rooms. The only question now is how snug will the "infamy" stick to both companies? Verisign's PR already has a few blackeyes, and the "Verisly/Verislime" campaigns are a lot stronger than any NSI ones.

Hopefully PPE can do well with it.

~ Nexus

 

[WebCat]

Well said, Nexus!

Here's a WebCat prediction: Since Verisign will retain the Registry and NSI the Registrar will be split, I predict that NSI will slide very quickly into the bottom rungs, and within 3 years will be virtually out of business. Reason? I think as a registrar, they stink, and without the Registry, they will quickly die.

WebCat

 

[Nexus]

I think the things that work against NSI as a registrar are: #1.) Problematic past history 2.) Current pricing level

I think they still have a large cadre of clients, and if they worked very hard, and dramatically altered their pricing, could turn things around. Tough balance, as I don't think they should become "too" discount. With new management behind the helm, anything is possible.

I think the whole domain name registrar business has gotten more cutthroat than the personal computer industry though (which is *pretty* darn cutthroat). I doubt any registrar "super-stars" will ever develop again unless someone reinvents the biz somehow.

Those margins... could give you a paper cut...

~ Nexus

 

[Steen]

I didnt know NSI ever owned the registry, good to know.

 

[WebCat]

Originally posted by Nexus
I think the things that work against NSI as a registrar are: #1.) Problematic past history 2.) Current pricing level

~ Nexus

Nexus, I think you forgot a few other NetSol killers:

3) TERRIBLE customer service

4) Utter indifference and arrogance- after all they did own the registry!

5) Living in the past when $35.00 registrations were acceptable. Now there a 4 to 1 ratio or better! $35.00 buys you SEVEN registrations at RackShack!

6) GoDaddy, eNom, Tucows and Dotster! All progressive, discount registrars, and MUCH better places to have domains registered.

 

[Nexus]

I deleted your 3 & 4 from my original post and summarized them with number 1. Your #5 is my #2.

Your #6 doesn't really apply, IMHO. My statement is referring to the new ownership moving forward.

I disagree with #6. I don't think "discounted" equates to "progressive" if that is implied somehow. I think GoDaddy is a very very "busy" and hard to navigate service. I've long preferred more expensive options over them due to this "hodge podge" feel. I remember when I gladly paid $14 a reg, and ignored GoDaddy because they look horrible. I only use them now due to the presence of their drop catching service.

Overall, apart from a few legacy related hiccups (their past wholesale programs creating odd account problems with certain clients), my recent experience with NetSol has been pretty smooth.

I think too many people hold onto past grudges. I left MediaOne for bad service, but was willing to go back to them as At&T Broadband later, when my new provider was giving me issues. Their pricing was higher, but I would have made the sacrifice for better service. Similar things can happen in this (domain) market I bet.

~ Nexus

 

[Nexus]

Originally posted by WebCat
6) GoDaddy, eNom, Tucows and Dotster! All progressive, discount registrars, and MUCH better places to have domains registered.

Just read this article about GoDaddy.

http://www.emediawire.com/releases/2003/11/prweb89770.htm

"I have dealt with similar situations through other domain registrars, especially Network Solutions and have never, EVER run into anything like this. When it became apparent that GO DADDY was going to force our domain into expiration we immediately took steps to register a new URL 'WebcastersAlliance.com' (http://www.webcastersalliance.com) and put the site up under the new domain to mitigate our damages as much as possible. The problem is we rely on the traffic and the donations from our supporters in our fight against the RIAA. If they can't find us they have no way of knowing what is happening with our organization and no way to donate and continue supporting our cause."

For the record, I think all the "proxy" whois services have some major flaws in the concept.

Eek.

~ Nexus