Rightside has rejected Donuts’ $70 million offer for its new gTLD domain name extensions, the company announced in a press release this morning. I don’t think this is a huge surprise given the company’s focus on the new gTLD domain name extensions.
In announcing the rejection, Rightside CEO Taryn Naidu stated, “We believe Donuts’ proposal is an opportunistic attempt to acquire Rightside’s valuable portfolio of domain extensions with an undervalued price and in a manner that would not be in the best interests of Rightside shareholders.”
When the news of the offer was announced a week ago, I posted a poll asking readers if they think Rightside should accept the offer from Donuts. It was a bit surprising to me, but nearly 57% of those who responded chose “no.” I say that it was surprising because it often seems that people who share comments on my blog tend to be a bit anti-new gTLD domain names for whatever reason. I thought this might skew the audience to vote “yes,” but I would have been incorrect.
Now, the question I have is what number would it would take for Rightside to accept an offer to sell its new gTLD extensions? Even though I own domain names I have no interest in selling, all of them would certainly be for sale if someone made the right offer. Heck, I would sell DomainInvesting.com for the right number!
In this morning’s press release, Rightside reiterated its projections for revenue generated from its new gTLD domain names: “As discussed on the Q1 2016 earnings call, Rightside is targeting annual Registry revenue over the next 3-5 years between $50 million – $75 million.” I presume they did so because they want to show that it would be short sighted to accept a $70 million offer for a business unit that is projected to bring in $50-75 million annually in just a few years.
I reached out to Taryn to ask if he would comment on what it would take for Rightside to sell its new gTLD domain name extensions, and I will update this article if I hear back from him.