back to article Domain name bods NetNames netted by CSC Global

Domain biz NetNames has been flogged to US biz services outfit CSC Global for an undisclosed sum. Private Equity biz HgCapital has decided to offload NetNames after taking the publicly-listed outfit private in autumn 2011 for £153m, but it said little else about today's transaction. The deal isn't a massive surprise, as we …

  1. Stuart 22

    What's the point?

    "NetNames recorded flat revenue of £53m. However, loss before tax climbed to £20.89m"

    A net margin of -40% in a non-growth, non-innovative market is no way to do business. Or, surely, to stay in business?

    Sell the clients to a competitor who can amortise the costs over a bigger base would be the only sensible strategy. Or shutter it tonight. Anything else is madness.

  2. batfastad

    Mad

    I've never known anyone in this post-dot-com-bubble-burst era charge such high fees for domain registrations, renewals and transfers. The fact that they have lost so much money when their markup on wholesale registration fees is in the 1000% range is, well, impressive!

  3. Anonymous Coward
    Anonymous Coward

    Domain name registration is a vanishingly low margin business dealing with the lowest cost but most critically important components of a firm's public internet presence.

    That's a thankless mix that guarantees a bad name to the firms that operate in the space.

    What any enterprise IT vendor would want with a business like that is beyond me. This is possibly the one thing short of child trafficking that could actually make their reputation worse.

  4. Crazy Operations Guy Silver badge

    Demand for gTLDs

    Nobody really wants the gTLDs, they seem to only exist for brand protection and nothing more. No one trusts them and they go unused and will probably just end up being ignored or actively avoided like ".biz" or ".info". The whole concept was flawed from the beginning, especially since ICANN tried this crap before with ".areo" and ".museum" which failed horribly...

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