VeriSign will manage and operate the .com registry until at least November of 2018. That’s the news out of VeriSign today, after receiving formal approval from the U.S. Department of Commerce forr a six year contract renewal.
VeriSign’s renewal of the .com registry comes a bit later than first expected, due to a review from U.S Department of Justice. VeriSign has been managing the .com domain registry since 1999 in a deal that was renewed in 2006 and was set to expire today.
The extended renewal process was noted during VeriSign’s third quarter 2012 earnings call as a procedural issue that they expected to be able to work through.
As part of that extended process, the Commerce Department adjusted the terms and conditions of the deal from how the 2006 deal was structured. In VeriSign’s 2006 renewal, there was a provision that allowed for .com domain price hikes over the length of the contract. The 2012 contract renewal does not allow for .com price hikes.
According to VeriSign the current pricing of $7.85 per new .com domain registration will not change over the next six years. That said, the company noted that,” if Verisign demonstrates to the Commerce Department’s satisfaction that market conditions no longer warrant such restrictions.”
“This is an important event that provides certainty and sets a clear direction for the Company,” said Jim Bidzos, executive chairman, president and chief executive officer for Verisign. “This certainty, combined with our strong portfolio of assets, which includes broad DNS expertise, a combined total of more than 200 unique patents and patent applications in the U.S., the world’s most reliable registry, and over $1.4 billion in cash, positions us well to participate in the growing global market for Internet registry and infrastructure services.”
VeriSign reported fiscal third quarter 2012 revenue of $244 million at the end of October, with Net Income reported at $78 million for the quarter, up from $59 million in 2011.