Go Daddy
opposes ICANN-VeriSign agreement
Yesterday, February 28,
ICANN announced that its Board of Directors met and approved the pending deal
with VeriSign for the .COM registry. The agreement will let VeriSign raise
registration fees by 7% annually in four of the next six years. It will also
give VeriSign control of the .COM registry indefinitely, as it extends
VeriSign's "presumptive renewal" right when this agreement ends in
2012.
The deal was approved by a majority vote, with nine voting in favor
and five voting against. One director abstained. Vinton Cerf, who is the
Chairman of ICANN and also now an employee of Google®, voted in favor of the
give-away.
Following the vote, Credit Suisse increased the price target
on VeriSign stock. Their analyst describes the .COM registry as VeriSign's
highest margin business (before any price increases). He goes on to say that the
compounding effect of just the price increases could represent a net present
value of $4 to $5 per share for VeriSign, or 1 to 1.25 billion dollars. The
price increases will start in 2007.
Go Daddy CEO and Founder Bob Parsons
is voicing strong disapproval of this agreement. "The agreement is a bad deal
for our customers and the Internet community as a whole," said
Parsons.
"The fact that this deal was approved is a loud signal that
major changes are needed at ICANN. If we don't step up and overhaul ICANN, and
leave the Internet largely under the control of this incredibly inept
organization, this will go a long way in providing the United Nations with the
ammunition it needs to start taking control of the Internet – that must never
happen."
From here, before the deal becomes final, the U.S. Department of
Commerce will still need to approve it. If you are disappointed with this recent
decision, consider writing a letter to your Senator and Congressperson. You can
find the email address of your representatives at the following two
Websites:
For more information about
the agreement, please visit Bob Parsons' blog – Hot Points! – at
www.BobParsons.com.
