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After the sale, Ethos Capital, having paid $1.135 billion for .ORG to ISOC, will have to recoup that investment on a scale that's expected of a private equity firm. This week, Ethos revealed for the first time that some $360 million of the purchase price will be financed with a loan. The payments on that loan will have to come out of Ethos's profits, so they will probably need to raise more money per year than ISOC currently does. While Ethos could try to simply increase the number of its "customers" for .ORGs, PIR has tried this in the past, and the demand for the domains has remained largely flat. This is no surprise; the nonprofit sector just doesn't grow at exponential rates.
That brings us to the myriad reasons nonprofits have criticized the deal: every other way that Ethos might increase profits is bad news for .ORG users. And these tactics aren't farfetched: every one of them is already delivering profits in other sectors, often while harming domain registrants and their visitors.
https://www.eff.org/deeplinks/2020/01/icann-needs-ask-more-questions-about-sale-org
Previously:
As Internet Pioneers Fight to Preserve .org's Status, those in Charge are Hiding Behind Dollar Signs
ICANN Demands Transparency from Others Over .org Deal; As for Itself... Well, Not So Much
Internet Society Says Opportunity to Sell .org TLD to Private Equity Biz Came Out of the Blue
As Pressure Builds Over .Org Sell-Off, Internet Governance Orgs Remains Silent
.ORG TLD Sold to Investment Firm Ethos Capital
ICANN Eliminates .org Price Cap Despite Overwhelming Opposition
(Score: 2, Insightful) by Anonymous Coward on Monday January 20 2020, @07:41PM (4 children)
What do you call it when insiders scratch each others backs to hand over millions of websites to a new monopoly that no-one asked for but now everyone gets to pay for?
A Market Solution!
(Score: 1, Touché) by Anonymous Coward on Monday January 20 2020, @09:25PM (2 children)
That's the opposite of a market solution, the opposite of capitalism, and the essence of the corrupted term crony capitalism.
(Score: 1, Touché) by Anonymous Coward on Monday January 20 2020, @11:36PM (1 child)
How do we prevent capitalism from getting that "crony" word before it once its curve of development begins to decline?
Use dcron instead?
(Score: 1) by khallow on Tuesday January 21 2020, @10:23AM
Rule of law for starters. And everything sucks in decline. Capitalism isn't going to be any different.
(Score: 2) by barbara hudson on Monday January 20 2020, @11:48PM
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