According to a press release we were sent today by Top Level Domain Holdings Limited (AIM:TLDH), better known to the domain community as Mind + Machines, the Company “has agreed a funding facility to support its participation in a prospective auction in relation to a specific contested gTLD application”.
“The conditional funding will be provided solely in exchange for a perpetual share in the gross revenue generated by the gTLD string so funded (“Auction gTLD”) should the Company be successful in the auction”.
“Under the funding agreement, TLDH has the right to call up to US$10m, to be used exclusively to acquire from ICANN the right for the Company to own and operate the Auction gTLD”.
“The funding provider has the right to increase its funding by up to a further US$5m”.
“The funding provider’s participation will be limited to a share of the gross revenues from the future operation of the Auction gTLD. ”
“The funding is not repayable other than through the gross revenue share. TLDH will retain sole management rights and responsibilities in the running of the Auction gTLD.
Fred Krueger, executive chairman said:
“We believe that this funding model provides an attractive way to secure the resources to participate in an auction of those contended strings that we believe have significant revenue potential, while at the same time avoiding dilution to our shareholders”.
TLDH is one of the largest new gTLD applicant with 72 new gTLD applications.
Something tells me $15M won’t be enough to cover very many of these auctions.
JP
Agreed
Yup, gonna need a bigger arsenal than $15 million. Curious. Anyone have an estimate of the valuation of Donuts, based on investment?
Considering how quickly TLDH is running out of money, one would think this is a life line for the company – but it is not – Read more closely – its $15 million for one application – one TLD. Not all of them.
On Monday TLDH announces the appointment of a new director, Keith Teare. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11499521
Solid resume and very successful entrepreneur with his own venture capital fund. Begs the question – why would he suddenly decide to join with TLDH?
Today, TLDH announces a funding agreement with an unnamed entity for upwards of $15 million for use at auction for one tld application.
Looks like Mr. Teare and his venture find just bought himself an application from TLDH.
That is why he joined the team. He does a rev share with TLDH where he gets the lion’s share of the gross revenue, TLDH is left with crumbs to cover operations, and Teare gets a directorship complete with stock and other forms of remuneration. Surely this must be disclosed, right?
One would wonder if TLDH has to now update its applications and disclose this funding mechanism.
I think they would. If not, TLDH is taking a huge risk with regulators and ICANN.
The announcement says that $15M will cover an auction for a specific contested application. Sounds like they have up to $15M in funding for 1 string not several. That’s a scary thought
That’s a lot of speculation Tobias – do you know something we don’t?
I found the PR to be unclear as to whether it was for one unidentified string or for gTLD auctions overall.
I don’t think having $15M available for one string is “scary” we expect to see many new gTLD strings auctioned off for $10M or more.
That’s business
“That’s a lot of speculation” – this stuff has so much VC – its beyond speculation – its like a ponzi scheme 🙂
One string.
Fred
Congrats
Guess there is not much of a chance you disclosing here what that string is?
Sounds like ICANN staff is going to have some big parties with all that money.
I’ve been examining the .tires string. If ICANN allows the closed registry applications of Bridgestone and Goodyear to proceed, it will be an auction between an implacable force and an immovable object. End user v end user. $15m won’t even be enough to raise a deposit.
At stake are EMD names like Buy.tires, Auto.tires, Truck.tires, Safety.tires and LosAngeles.tires, winner take all, the winner to “own” the word “tires”.
Bridgestone application edited excerpts:
“The .tires gTLD will create a new generation gTLD serving the interests of end users by providing an authoritative Internet space where information regarding Bridgestone Americas Tire Operations LLC (BATO), its Bridgestone and Firestone tires brands, maintenance information & services will be closely controlled by BATO…
“…competition: the proposed new gTLD is not intended to instigate competition and consumer choice at the level of registration of domain names among prospective registrants.”
Goodyear application excerpts:
“…Goodyear plans to operate the proposed .tires gTLD as a restricted, exclusively-controlled TLD and as such will not be commercially offered for registration/use by the general public…
“Goodyear anticipates conducting a multi-faceted outreach and communications campaign that will likely involve all communication channels, including but not limited to TV, radio, mobile, print, social media, direct mail, online advertising and marketing via our active, client and affiliate-facing websites and other public relations activities…”
The stakes are cloud high.
This is covered at SuperMonopolies.com on the .tires string page.
“winner take all, ”
“The stakes are cloud high.”
“SuperMonopolies.com”
I cant even jack off this is so tense 🙂