domains Ethos Capital Acquires Majority Control of Donuts Inc.

[Lox]

Ethos Capital, LLC (“Ethos Capital”), a private equity firm that invests in middle-market companies, announced today that it has completed an investment to acquire a controlling interest of Donuts Inc. (“Donuts”) from Abry Partners. Based in Seattle, WA, Donuts holds the world’s largest portfolio of top-level domains (“TLDs”) and offers individuals and organizations new ways to promote and enhance their true digital identities.

"Akram and the rest of the Donuts team have built an industry-leading domain company and demonstrated consistent organic growth through multiple market cycles. We are thrilled to partner with the team and look forward to applying our unique value proposition to their existing platforms”

Ethos Capital’s Co-CEOs, Erik Brooks and Fadi Chehadé, have deep experience in the digital infrastructure sector and have owned and worked with companies in the domain industry for years. Ethos Capital’s initial investment in Donuts in 2020 facilitated the acquisition of Afilias, Inc. a leading TLD registry operator and provider. The Ethos Capital investment group, which includes strategic partner The Baupost Group, funds managed by Neuberger Berman and others, now controls the Donuts Board of Directors and will provide a strong shareholder base to support the company’s future growth.

“With extensive operational expertise and significant experience in domain name and related industries, Ethos Capital is the perfect partner to support our mission of reliability, security, and stability, as well as position us for continued success. We look forward to working with the Ethos Capital team and leveraging their expertise as we enter this next phase of growth,” said Akram Atallah, CEO of Donuts.

read more (businesswire)

 

[branding]

Ethos Capital, LLC (“Ethos Capital”), a private equity firm that invests in middle-market companies, announced today that it has completed an investment to acquire a controlling interest of Donuts Inc. (“Donuts”) from Abry Partners. Based in Seattle, WA, Donuts holds the world’s largest portfolio of top-level domains (“TLDs”) and offers individuals and organizations new ways to promote and enhance their true digital identities.

"Akram and the rest of the Donuts team have built an industry-leading domain company and demonstrated consistent organic growth through multiple market cycles. We are thrilled to partner with the team and look forward to applying our unique value proposition to their existing platforms”

Ethos Capital’s Co-CEOs, Erik Brooks and Fadi Chehadé, have deep experience in the digital infrastructure sector and have owned and worked with companies in the domain industry for years. Ethos Capital’s initial investment in Donuts in 2020 facilitated the acquisition of Afilias, Inc. a leading TLD registry operator and provider. The Ethos Capital investment group, which includes strategic partner The Baupost Group, funds managed by Neuberger Berman and others, now controls the Donuts Board of Directors and will provide a strong shareholder base to support the company’s future growth.

“With extensive operational expertise and significant experience in domain name and related industries, Ethos Capital is the perfect partner to support our mission of reliability, security, and stability, as well as position us for continued success. We look forward to working with the Ethos Capital team and leveraging their expertise as we enter this next phase of growth,” said Akram Atallah, CEO of Donuts.

read more (businesswire)

Thanks! Wasn't this predicted/hinted at in the past when they tried to take control of .org?

 

[Jurgen Wolf]

They partially control .ORG - because at now we have Afilias under Donuts under Ethos...

 

[Lox]

They partially control .ORG because at now we have Afilias under Donuts under Ethos...

Ethos tried go front-door, didn't work, now backdoor. I'm expecting to hear something like; .Org can't pay for the Afi backend service...

 

[Lox]

Popcorn reminder:

1. On May 8, 2019, ex CEO of ICANN, Fadi Chehade, registered the domain name EthosCapital.com
2. Ethos Capital was founded by Erik Brooks (blab), a former managing partner at Abry Partners.
3. Ethos Capital has acquired a controlling stake in Donuts Inc from Abry Partners.
   
4. Nora Abusitta-Ouri, ex ICANN's Vice President for Development and PR Programs. Now Ethos Capital.
5. Akram Atallah served as ICANN's COO. Now CEO for Donuts.
6. Jonathon Nevett – PIR org President and CEO, co-founded Donuts Inc.
7. Anand Vora – PIR VP, BA, ex Director of Business Development at Donuts, Inc.

etc etc

Regards

 

[bmugford]

I am disgusted with the revolving door that is ICANN. They are not working in the public interest.
Pretty much everything and everyone related to them are shady.

https://en.wikipedia.org/wiki/Revolving_door_(politics)

They can stick to their new extensions. If they try to mess with legacy extensions we are going to have a problem.

If they want to have another fight over .ORG, bring it on. The .ORG community including massive organizations, non-profits, charities, investors, registrants, etc. will mobilize against them even harder this time.

Brad

 

[Lox]

I am disgusted with the revolving door that is ICANN. They are not working in the public interest.
Pretty much everything and everyone related to them are shady.

https://en.wikipedia.org/wiki/Revolving_door_(politics)

They can stick to their new extensions. If they try to mess with legacy extensions we are going to have a problem.

If they want to have another fight over .ORG, bring it on. The .ORG community including massive organizations, non-profits, charities, investors, registrants, etc. will mobilize against them even harder this time.

Brad

+ Point 6. Jonathon Nevett – PIR President and CEO, co-founded Donuts Inc.

 

[Samer]

Neustar was owned by a VC; — Sold in 2016, before being sold again to Godaddy in 2020.

Relax. Ethos just aspiration to own a Registry, part of their portfolio. couldnt “non profit” .org;
so next best thing; “donuts.co” — Good luck. Lol Donuts.
I only own .COM

 

[Lox]

Thanks! Wasn't this predicted/hinted at in the past when they tried to take control of .org?

which includes strategic partner The Baupost Group, funds managed by Neuberger Berman and others (Du_ai)

EC partnered w Big, and big boys play $1 on $1 game. They'll swallow PIR soon.

 

[Samer]

which includes strategic partner The Baupost Group, funds managed by Neuberger Berman and others (Du_ai)

EC partnered w Big, and big boys play $1 on $1 game. They'll swallow PIR soon.

Then they’ll buy .net off Verisign.

 

[bmugford]

Then they’ll buy .net off Verisign.

Verisign does not own .com or .net. It is not theirs to sell.

They are simply allowed to operate both under a no-bid contract.

Brad

 

[Samer]

Verisign does not own .com or .net. It is not theirs to sell.

They are simply allowed to operate both under a no-bid contract.

Brad

I thought it would be cheaper if the “no-bid” is
open for bid. Guarantee you, they’d be in it.

 

[Reallybigidea.com]

Verisign does not own .com or .net. It is not theirs to sell.

They are simply allowed to operate both under a no-bid contract.

Brad

so does US government owns a dot .com gtld?

 

[Samer]

so does US government owns a dot .com gtld?

https://domainnamewire.com/2019/07/17/u-s-gov-gives-neustar-10-year-extension-on-us-domain/
Remember, Godaddy bought Neustar.
They have right to operate .us through 2029.
Believe, that too, is no-bid contract (like .com)

The cool thing about “owning” extensions;
Neustar’s 100% owner, and operator of .biz; @jmcc has why in his book.

 

[Lox]

I thought it would be cheaper if the “no-bid” is
open for bid. Guarantee you, they’d be in it.

In order for something like this to happen, you'll need to convince the US DHS etc. to give the go-ahead. Verisign is more than just .ext registry.

Regards

 

[Samer]

In order for something like this to happen, you'll need to convince the US DHS etc. to give the go-ahead. Verisign is more than just .ext registry.

Regards

These are rumblings.
Rumor has it; it costs $1 operate each .com
Verisign thwarts off competition by saying;
“We have kept .com up running & stable.”

The competition claims they can .com cheaper

 

[bmugford]

so does US government owns a dot .com gtld?

Unlike the new extensions, legacy extensions like COM/NET don't have an actual "owner".

They are allowed to operate under (no-bid) contract with ICANN, but they are under the jurisdiction of US law with government entities like the Department of Commerce overseeing them.

Brad

 

[bmugford]

These are rumblings.
Rumor has it; it costs $1 operate each .com
Verisign thwarts off competition by saying;
“We have kept .com up running & stable.”

The competition claims they can .com cheaper

If there was a competitive bidding process to operate .COM, the registration prices would come down dramatically. I have seen $1-$2 estimates.

Verisign has done a relatively good job, at the same time I don't think they are uniquely qualified to run the registry.

They should not be able to raise prices, past inflation levels, just because they can. If ICANN really was operating in the public interest, these would not be no-bid contracts that allow price increases far outside any reasonable levels.

Brad

 

[Samer]

Unlike the new extensions, legacy extensions like COM/NET don't have an actual "owner".

They are allowed to operate under (no-bid) contract with ICANN, but they are under the jurisdiction of US law with government entities like the Department of Commerce overseeing them.

Brad

.ORG almost sold from “non-profit” entity to this same VC that bought donuts’ majority.

I can see why it’s concerning.
Next up XYZ to be swallowed?
Registry, Registrars seem prime consolidation

 

[bmugford]

.ORG almost sold from “non-profit” entity to this same VC that bought donuts’ majority.

I can see why it’s concerning.
Next up XYZ to be swallowed?
Registry, Registrars seem prime consolidation

And the lack of competition rarely benefits the consumers.

Honestly, I don't care that much about new extensions. That was a different ballgame to start with. Those actually have owners, unlike legacy extensions.

Legacy extensions are a different ballgame. They existed for 25+ years before the new extensions came out.

If the companies operating the registries want to open the contracts for public bidding, I am fine accepting the free market outcome. We all know they would not be willing to do that.

Otherwise, no-bid contracts need to come with severe limitations.

Brad

 

[Lox]

These are rumblings.
Rumor has it; it costs $1 operate each .com
Verisign thwarts off competition by saying;
“We have kept .com up running & stable.”

The competition claims they can .com cheaper

Wayback: the US CHRG / hearing 2006 / CHRG-109hhrg31468
In 2005, VS lowered its registration from $6 to $3.50 and implemented other improvements when the dot net registry contract was re-vetted.

 

[bmugford]

Wayback: the US CHRG / hearing 2006 / CHRG-109hhrg31468
In 2005, VS lowered its registration from $6 to $3.50 and implemented other improvements when the dot net registry contract was re-vetted.

Verisign is charging what they are allowed to, not what they need to.

They are making around $1.3B a year in registration/renewals fees to essentially maintain a database of .COM/NET registrations.

This number is only going to go up as they tack on 7% yearly increases, which far outpaces any inflation levels. They are doing this because they are allowed to do it.

I can guarantee you if the option was to lower the prices or put the contract out in a bidding process, they would lower the prices. Versign is just being greedy and it is only enabled because of ICANN's actions.

There is no legitimate reason to need to raise the prices yearly. They are basically just being allowed to print money via no-bid contract.

Brad

 

[Lox]

Verisign is charging what they are allowed to, not what they need to.

They are making around $1.3B a year in registration/renewals fees to essentially maintain a database of .COM/NET registrations.

This number is only going to go up as they tack on 7% yearly increases, which far outpaces any inflation levels. They are doing this because they are allowed to do it.

I can guarantee you if the option was to lower the prices or put the contract out in a bidding process, they would lower the prices. Versign is just being greedy and it is only enabled because of ICANN's actions.

There is no legitimate reason to need to raise the prices yearly. They are basically just being allowed to print money via no-bid contract.

Brad

VS is one of (a very important) strategic partners of the US IT SCC - IT GCC CI/KR protection & risk management program. I guess, someone has to pay for all that.

 

[platey]

i own

two keyword. com s

and

many new gtld extensions etc

private equity funds will at sone point own much of the domain name industry etc

domain names are digital land on the internet and land on the internet is being bought up one domain at a time one portfolio at a time one brokerage at a time

the digital infrastructure of the internet is being build by private equity funds and hedge funds via billionaires investment vehicles etc

for the domain industry to be a proper industry it needs the proper digital infrastructure which it currently does not have

the domain name industry needs

autonatic trademark check of every domain name prior to purchase

free domain name insurance as standard with every donain name purchased

free legal service as standard with every donain name purchased

automatically asigned a broker with every domain name purchased

instant liquidation of any domain name at market value at any domain name registrar

etc etc etc

which will remove the

0.000001%

alleged elite within the domain name ibdustry and add liquidity to all within the domain name industy

in stead of a few at the top of the industry hoarding all the cream amongst themselves and telling everyone ekse their domaibsare rubbish and have no value etc

a myth that new gtlds will disprove

a level playing field is coning to the domain name industry as it digital infrastructure is built and should already exist but doesnt

the digital infrastructure will come from the private equity funds of billionaires not millionaires

 

[tonyk2000]

Donuts extensions:
https://donuts.domains/what-we-do/top-level-domain-portfolio/

Even though I'm not in nGTLD space, I can admit that I own <10 domains in ngtlds, all handregs. Just for fun. In light of this news, I am considering dropping all donuts-powered domains... Reputation of a registry operator is an important factor...