Earlier today, Donuts published a press release announcing it made an unsolicited $70 million cash offer to buy all of the new gTLD domain name extensions owned by Rightside. In the release, the company also shared the letter its CEO Paul Stahura wrote to Rightside CEO Taryn Naidu.
In this morning’s announcement, it was made clear that this wasn’t the first time Donuts had made an overture to acquire Rightside’s new gTLD domain names. This afternoon, Rightside issued its own press release in response to the public overture from Donuts. In it, the company stated that it would “evaluate any proposal to determine whether it is in the best interests of the Company and its shareholders.”
It will be interesting to see what ends up happening after the Rightside Board of Directors and management team meet to discuss this offer. It would also be interesting to know what Rightside investors and registry operators Daniel Negari (source) and Frank Schilling (source) think about this offer.
Here’s the full press release issued by Rightside this afternoon:
KIRKLAND, Wash., June 24, 2016 (GLOBE NEWSWIRE) — Rightside Group, Ltd. (NAME), a leading provider of domain name services that advance the way businesses and consumers define and present themselves online, confirms receipt of an unsolicited, non-binding proposal from Donuts Inc. to acquire Rightside’s entire registry of generic top-level domains and related assets for $70 million in an all-cash deal.
Rightside appreciates Donuts’ interest in these assets and also shares their enthusiasm for the Registry business. The Company’s Board of Directors and management team remain committed to maximizing long-term shareholder value and as such they will evaluate any proposal to determine whether it is in the best interests of the Company and its shareholders.
About Rightside
Rightside ® inspires and delivers new possibilities for consumers and businesses to define and present themselves online. The company, with its affiliates, is a leading provider of domain name services, offering one of the industry’s most comprehensive platforms for the discovery, registration, usage, and monetization of domain names. In addition to being a new gTLD registry operator, Rightside is home to some of the most admired brands in the industry, including Enom and Name.com. Headquartered in Kirkland, WA, Rightside has offices in North America, Europe, and Australia. For more information please visit www.rightside.co.
It’s a NO.
At some point there will be consolidation in the registry biz. But apparently now is not the time?
Hello Elliot,
Rightside should take the money and run while they still have cover. Anyone that understands the fundamentals of Protective Capitalism will see this as a Google Backed attempt at controlling the new TLD market.Desperate
Gratefully, Jeff Schneider (Contact Group) (Metal Tiger) (Former Rockefeller IBEC Marketing Analyst/Strategist) (Licensed CBOE Commodity Hedge Strategist) (Domain Master https://www.UseBiz.com
I don’t see this as a genuine offer at less than 2m per extension.
.games by itself could be worth 70m in less than 10 years.
Rightside appears to be doing a better job at risk management.
Donuts would be better off long term using the 70m to bundle up their non-performers into a separate entity to sell off and ramp up the marketing on the performers.
Relentless Global marketing is what the industry needs right now. consolidation will come soon enough.