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07|14|2007 05:55 am EDT

Dotster in trouble?

by Frank Michlick in Categories: News

Rumors that domain registrar Dotster is for sale have been around for several years now in the market. Now new rumors have surfaced on ThreadWatch saying that Dotster is in financial trouble and has started laying off high paid staff. Maybe it’s just the sign of a restructuring though.
Dotster has a large user base and the company has bought many other registrars over the years, including DotRegistrar, which went out of business a while back. In October of last year, they closed their aftermarket site, NameWinner and transferred most of their dropping names to SnapNames instead. Their name also popped up in the news in June, when it was publicly pointed out that they will “wildcard-park” subdomains of your names, if you use their DNS.

[via Seven Mile]



Jimmy Vassar

July 14, 2007 @ 6:35 pm EDT

Interesting stuff.

What is the making of a good registrar I wonder?

Are low cost domains soon to be a thing of the past? Is the model unsustainable?

Or is this a result of poor management and structure causing what should be a profitable company to fail?


July 16, 2007 @ 1:07 pm EDT

What I hear from the little birds is that they are in HEAVY acquisition mode. That too would explain shifts of capital.

Adam Strong

July 16, 2007 @ 2:49 pm EDT

Firing high paid staff to buy domains/companies ?
I guess the returns are likely much better.

Frank Michlick

July 17, 2007 @ 5:15 pm EDT

Apparently Dotster is just fine, as per their CEO’s note to Frank Schilling:

Just a quick note to let you know that Dotster has never been healthier or in a better financial position than we are currently. We have strategically redirected resources towards our highest performing business units as any well managed business should do. The biggest challenge facing us is how to leverage our strong balance sheet.

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