Daniel Negari the CEO of the .XYZ registry just offered Rightside (NAME) $5 Million dollars cash to buy four of their new gTLD extensions; .Army, .Vet, .Dentist, Dance.
The four extensions were uncontested, meaning Rightside did not have to buy them in an auction and got them for the $185,000 application fee per string.
The four extensions according to ntldstats.com have a total of less than 15,000 domain names registered.
The extensions subject to the offer (with the number of domain name registrations) are:
.Army 1,131
.Vet 5,180
.Dentist 2,792
.Dance 4,878
Rightside currently has a market cap of $157 Million based on today’s price of $8.19 a share, meaning this offer is equal to over 3% of Rightside’s market cap.
Here is the offer that appears on Daniel Negari’s blog at ceo.xyz:
“”Below you will find an offer to Rightside Group, Ltd. to purchase four of the under-monetized new gTLDs (generic top level domains) Rightside holds, including .army, .dance, .dentist and .vet, for $5,000,000.
I chose these four gTLDs, which currently have fewer than 15,000 domains registered, to highlight the tremendous value Rightside’s registry component holds.
These four gTLDs were great investments for Rightside, each costing only a $185,000 application fee ($740,000 in total), but they are not being capitalized on.
If Rightside accepts my offer, it will realize a profit in excess of $4,000,000.
We are an experienced, successful registry operator of 6 gTLDs directly and 3 in a joint venture. I am interested in many more of Rightside’s gTLDs for the benefit of my growing registry, XYZ, but figured I would break the ice with some of Rightside’s low revenue generating assets first. The below offer is valid until the end of business day on April 7, 2016.
Also, if there are any Registry Operators out there who are looking to sell their gTLDs, we are cashed up, and ready to do deals. You can reach me at https://ceo.xyz/contact/
Disclosure: I am individually a large shareholder and SEC 13-D Filer on $NAME. Filing this with the SEC shortly.”
A memorandum of understanding also appears on Mr. Negari’s blog which lays out the details of the offer.
And he has $5M also in Rightside stock.
That’s a lot of coin Daniel is throwing around.
He plan on goosing NAME to sell his equity position out?
I saw Daniel was hanging with the NAME guys up in Whistler.
He and Frank want Ticker symbol NAME, something is up with all this. I don’t know what, but it’s weird, if you own your own registrar why are you investing in your competition?
What you say Taryn?
He wins either way since he owns a lot of stock.
Dentist release was totally F’ed up, are they going to price everything at $3,000 like .cars
Personally these guys shouldn’t even be allowed to own anymore extensions, they are a disgrace.
I don’t think you understand the barrier to entry concept. They don’t want just anyone registering these domains. It’s not meant to be for domain speculators…it’s meant for end users.
There are 140,000 dentists in the us , if only 15 percent would pay only 100 up front and 25 a year for at least 4 years he would recoup 4m in just that one string… 5 million would be a great buy . He already has the infstrucure and team .
Daniel Negari is the Martin Shkreli of the domain industry. It will all implode on him eventually. Get the popcorn.
Martin Shkreli is an underrated genius. Daniel should take your attempt at an insult as a compliment.
I am sure Rightside already shot down the deal, hence making it public, which they probably don’t like as it makes them look really incompetent.
April fool’s day started so early????
When you are a large shareholder of a company, you cannot joke about such things, or put out false PR, the SEC monitors such activity.
Daniel should focus on .rent
wich is in my opinion the best extension
Ryan
My understanding is that the deal was not communicated to Rightside, actually a letter was sent yesterday, MR. Negari’s blog post was the first notice of the proposal which had to be made in a public way since Mr. Negari is a 5% of greater shareholder of Rightside which is a public company, so you appear to be incorrect that they “already rejected the offer” as they have not officially received the offer.
Seems like a solid enough offer. I agree, that even “if” the offer is rejected, it will assist in placing a min. value on the company for any future acquisition inquiries. However, it seems a bit low to me looking at the number crunching and potential. I’d be more interested in hearing about what the counter offer was, if it goes that far.