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registries Donuts Is Buying Rightside!

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Silentptnr

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I just read an article on DN Journal by Ron Jackson. It's almost official, Rightside will be bought by Donuts. Donut's has some 200 gTLD's under management and will add 40 from Rightside. Should be done later this year.

What do you think of this? I'm very surprised.

Source: http://www.dnjournal.com/archive/lowdown/2017/dailyposts/20170614.htm
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Smart move for Rightside IMO.
 
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Lol.. ya beat me too it :)

I was just about to share the exact same article... haaha
 
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Pretty crazy! Seems like a win, win, win situation. Rightside wins, Donuts wins, Domainers win.
 
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And the merged company will be renamed into RightNut ))

I don't want to see its logo ))))
 
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I always maintained the shenegans which went on in the boardroom of Rightside over their debt favoring decisions, and the sale of eNom was the beginning of the end of Rightside. Although, on the face of it Name.com has seemed to be the registrar to keep, in hindsight (better run, imho). I could not see Rightside making an nGTLD business with insufficient funds to properly promote their ideas. It was inevitable that they would get swallowed up by a bigger competitor. As @Kate said and has properly predicted in the past. The consolidation continues. In the words of that great band The Who, Who's Next.
 
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I always maintained the shenegans which went on in the boardroom of Rightside over their debt favoring decisions, and the sale of eNom was the beginning of the end of Rightside. Although, on the face of it Name.com has seemed to be the registrar to keep, in hindsight (better run, imho). I could not see Rightside making an nGTLD business with insufficient funds to properly promote their ideas. It was inevitable that they would get swallowed up by a bigger competitor. As @Kate said and has properly predicted in the past. The consolidation continues. In the words of that great band The Who, Who's Next.
xyz....club?
 
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xyz....club?

I think XYZ has enough unrealistic plans to keep cash flow coming in for maybe up to 12 months. I though that CLUB was reasonably well run, and might just be gobbled up as a ongoing investment with an arms length offer. A rarity, it would seem.

@beazy - I have to laugh where they said that Rightside out beat expectations by 0.04 when they returned 0.29 when the expectations were 0.33 :) I don't see much in the way of an oddity in their stock movements. You always get some insider trading just before an acquisition. I'd be more interested to know who owns those buyers.
 
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I welcome the possibility of Donuts TLDs being offered on NameJet.
 
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Rightside's reported net income for 2016 was -$33,650,000.
Net income for last 3 years combined was -$46,832,000.
 
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Rightside's reported net income for 2016 was -$33,650,000.
Net income for last 3 years combined was -$46,832,000.

How much further would they need to lose to be bankrupt? I don't see this deal as a win for Rightside. I suspect they won't be operating as a stand-alone business for much longer. I don't know if all these losses are from the nGTLD side of their business or if it's just bad business management. But assuming most of them are from the nGTLD side of the business, prices will have to go up on Rightside's nGTLD's. They have a weird selection of nGTLD's. Probably only a handful of the 40, are investment grade potential.

In the interest of full disclosure. Many years ago, when NameWinner.com was operating. I was a big buyer on NameWinner and I won a domain on their auction, and the domain was pushed to my enom account with the previous owners whois info. The thief (the previous owner) called enom, got the authcode and stole the domain. I contacted 3 of their directors. They refused to start a recovery of the domain. They said that this was a feature for ease of use of owners. They refunded my auction price, WHICH WAS AGAINST THEIR TOS. Later they changed their push to enom accounts to the winners whois info. All my substantial holding of my domains promptly left eNom to Dynadot. If this was just a small sample of their business decisions, I'm happy the kharma has gone full circle back to them. They can rot in hell, from my perspective. I would only ask Donuts not to employ any of their directors who have made many bad decisions, ie their financing and their repayments. And have run this once great company (eNom) into virtual bankruptcy with their shenanigans.
 
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smart of rightside to sell such a sack of garbage business. donuts must think they're scooping up discounted assets, but something needs to have value to be an asset.

There is a vast difference in the businesses of godaddy/namecheap and those like rightside/donuts - the former are like landlords, where they can see consistent registrations fees coming in yearly for their assets in .com/.net/etc...The latter are in the product business, where there is no longevity. They will push a new extension for as long as they can make money from it, and once it proves to lose its value, they move on to the next one. Being early in the nTLD business, they don't understand this cycle as they continue to think their extensions have inherent value, and are afraid/ignorant to see that it is a losing game, and there can only be so many sensible extensions until you're trying to push something like .coathanger. Rightside hemorrhages money and loses exponentially more money every year...goes to show how naive the nTLD business is.
 
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Bankrupt? Seems unusual anymore- nobody buying tech stocks appear to care about rational P/E ratios anymore. Seems like all this casino like betting keeps going on. When interest rates normalize, lots of huge problems in the market and with consumer default again with the inflated housing market like 08', companies borrowing at cheap interest can't pay it back, etc. Mergers have all sorts of reasons besides obvious goodwill, product, customer lists, eliminate competition, maybe this is some creative tax write off. Like I said on another thread they should have been delisted, finally it is going private. I bet a year or two and a bunch of the unprofitable extensions are dropped or some other program ICANN creates to keep them.
 
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NameStat - 23,669,918

https://namestat.org/s/newgtld-summary

Screenshot from 2017-06-19 19:16:37.png
 
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