Net Registry Sold Will Prices Rise?
The move creates a potential giant in the Australian domain name space, with Web site Delimiter declaring it a potential near-monopoly.
The merger follows a recent downturn in Melbourne IT’s fortunes. In calendar 2013 its net profit plummeted 29pc to $6.2 million, and revenue dropped five percent to $103 million.
Under yesterday’s deal, NetRegistry scores a 4.99 to 9.99 percent stake in Melbourne IT and cash of $38-45 million. Founder Larry Bloch will join Melbourne IT as a non-executive director.
The deal will give incoming CEO Martin Mercer – formerly of Optus and before that MD of the Seven Group’s VividWireless fixed-broadband operation – a broader based platform to seek to restore Melbourne IT’s fortunes.