Rightside Rejects Donuts’ Unsolicited $70 Million Proposal, Says Undervalues Business

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Rightside Rejects Donuts’ Unsolicited $70 Million Proposal, Says Undervalues Business

By CircleID Reporter
July 05, 2016, 4:10 pm PDT Views: 6,542 Add Comment

Rightside board of directors rejects Donuts’ unsolicited proposal: In an announcement released this morning, Rigtside said its Board of Directors has rejected the unsolicited proposal from Donuts Inc. to acquire Rightside’s entire registry of generic top-level domains (gTLDs) and related assets for $70 million in an all-cash deal.

— Taryn Naidu, CEO of Rightside: “After thoughtful evaluation, Rightside’s Board has determined that Donuts’ proposal significantly undervalues Rightside’s Registry assets. ... We believe Donuts’ proposal is an opportunistic attempt to acquire Rightside’s valuable portfolio of domain extensions with an undervalued price and in a manner that would not be in the best interests of Rightside shareholders.”

— No further discussion warranted: Rightside also sent a letter to Donuts saying it doesn’t believe any further discussion is warranted on this proposal. http://bit.ly/29tRMy2

— “Rightside has rebuffed Donuts’ semi-hostile takeover attempt for its portfolio of gTLD registry contracts,” Kevin Murphy reporting in Domain Incite: “Activist investor J Carlo Cannell and Uniregistry CEO Frank Schilling, both of whom own small but significant chunks of Rightside, have called on the company to get rid of some of its under-performers. By announcing the offer publicly—apparently after months of private offers—Donuts might have been trying to capitalize on this unrest.”

By CircleID Reporter

CircleID’s internal staff reporting on news tips and developing stories. Do you have information the professional Internet community should be aware of? Contact us.

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