Verisign (NASDAQ ticker symbol: VRSN ) reported its Q4 2020 earnings after the closing bell this afternoon. In the press release announcing its earnings, the company also announced a price hike is coming for .com domain names. The current wholesale rate Verisign charges domain registrars is $7.85/year for .com domain names, and this price will increase to $8.39/year on September 1, 2021.
Here’s the relevant excerpt from the press release:
“Verisign announces that it will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from $7.85 to $8.39, effective Sept. 1, 2021.”
The actual cost paid by domain registrants to register or renew domain names will ultimately be determined by domain registrars. It looks like GoDaddy charges $12.99/year to register a new .com domain name, not including any discounts or coupons offered by the registrar.
I imagine domain registrars are not going to eat this fee, but instead, will let registrants know that Verisign is increasing the registration cost and that increase is being passed along. Some registrars may even use the pending price increase as an opportunity to drive revenue by having registrants renew their domain names before the price increases.
It looks like Verisign investors are happy about the news, as VRSN stock is currently trading at $211/share, up 3.15% after hours. Verisign stock is close to its 52 week high of $221.30.
What is the contract with Verisign – when can they raise prices again – it being a monopoly
It is a clear monopoly and the US government should be taking a careful look at how these constant prices rises are being allowed.
Needs the contract to go out to tender and an investigation into why the Trump administration gave their blessing to these price rises.
You’re right in your first paragraph, my canine nemesis, but I’ll spare you the investigation for the second. Trump was no less a corporatist serving the interests of the rich and powerful than Biden, or Obama, or Bush, or Clinton. It’s really that simple.
Biden administration will not allow this to happen when times get tough for businesses and individuals.
Instead of staying low profile with its record profits, Verisign just announced a monopoly price increase.
By doing this, Verisign just killed its cash cow by attracting the department of commerce’s attention who will now send the contract out for competitive bid.
I predict .COM wholesale price to be in the $3 to $4 in a near future !
Well done Verisign…
The price of .coms will go up and many new Gs will go down.
The monopoly has benefitted many folks – especially domainers – so crocodile tears from some.
Are there price caps on the new extensions? At least with Verisign, there are price restrictions in place.
Think again. You actually think the Biden administration or any previous one in recent memory cares one bit about ordinary Americans vs. the interests of the plutocracy and oligarchy that owns them all on all sides of the aisle?