Summary: Web.com confirmed the acquisition of SnapNames, a secondary online domain market operator.
Details: SnapNames was sold by holding company KeyDrive S.A., which acquired SnapNames in 2011. Numbers for the transaction were not disclosed. Web.com management expects the acquisition not to impact the 2014 financial results. The takeover is intended to enhance domain-related services from Web.com, which already owns the retail domain registrars Network Solutions and Register.com. SnapNames focuses on the domain lifecycle management including high-performing domains, dynamic online brokerage and resales. The acquisition is intended to complement the auction platform NameJet, which is operated in partnership by Web.com and Rightside. Web.com confirmed that expired domains from Network Solutions and Register.com will continue be auctioned through NameJet.
Overlap between SnapNames and NameJet: Both secondary domain markets do basically the same thing so there is some overlap with Web.com’s existing capabilities and potentially some conflict. We aren’t clear how permanent the relationship between Web.com and Rightside is and it could well be that either side will use out clauses or wait for the agreement to expire. At that point Web.com could go its own way with its own proprietary platform SnapNames. Looking at it this way, SnapNames would be a long-term investment so it can own the proprietary technology and run its own secondary domain aftermarket. The fact SnapNames is not going to be impactful on revenues suggests this is more of a technology and platform buy. Or it may just turn out this is not be the objective. Maybe Web.com simply saw an opportunity to buy this capability and work with other registrars to provide aftermarket domains for customers. Buying SnapNames simply puts more domain inventory in front of customers. Ultimately Web.com is primarily concerned with enabling small business customers to find the domain name they want. This will lead them to hosting and other related online services and enable success – the key to stickiness.
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