Publicly traded Demand Media (DMD) announced some news in a press release this morning that I want to share with you. The company announced that a proposed spin-off of its domain name services companies will be called Rightside Group. Taryn Naidu, who has been an Executive VP at DMD, will be the CEO of this spinoff company.
Interestingly, Rightside Group will be using a .CO domain name, which I believe shows the company’s commitment to the new gTLDs and the upcoming right of the dot world. Rightside.com is owned by someone in London, and the domain name does not currently resolve. RightsideGroup.com is owned by a private registrant and is parked, although the company may have privately acquired this domain name recently.
Taryn Naidu wrote an article on the company’s blog discussing the news. In it, Naidu discusses the company’s mission:
“Rightside’s mission – to advance how consumers and organizations define and represent themselves online – embodies both of these concepts. And we will deliver on this mission through the industry’s most comprehensive domain name services platform, an expansive distribution network, a large portfolio of some of the most highly anticipated gTLDs and a phenomenally committed and talented team. All of the capabilities, products and relationships that we have spent more than a decade developing will be united under the singular brand and company focus of Rightside.“
I think it will be beneficial for the domain investment space to have a publicly traded company that focuses solely on domain names. As of right now, Rightside Group is comprised of eNom, Name.com, United, TLD, and NameJet. I would imagine the new gTLDs are going to play a major role in the growth of the company, and it will be interesting to read its quarterly and annual reports to see how that business is developing.
The spin off process is somewhat lengthy and is similar to the IPO process. The company will need to file a form 10 with the SEC, and that will be followed by discussions with regulators. I am sure there are many people who will be following along with this process.