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Further consolidation in the new extensions sector

Juin 22, 2017 On 14 June, Donuts announced the acquisition of Rightside for 213 million US dollars. Rightside, as a registry, administers 40 new generic extensions including “.rocks” (79000 domains), “.pub” (71000 domains) and “.news” (67000 domains). The sale of Rightside is most likely due to poor financial results, as the new generic extensions were not as successful as previously forecast.

Donuts, which operates around 200 new generic extensions will thus increase its extension portfolio by 20% and become an important player in this sector. A year ago, Donuts offered to acquire Rightside for 70 million USD. The offer was rejected. The new purchase price represents a 12% increase over Rightside’s average closing price for the trading period of the last 30 days. In order to make the purchase, Donuts will take out a loan for a non-disclosed amount from the Silicon Valley Bank. The acquisition will be effective as from the third quarter of 2017.

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