Analysis: Thought Convergence Purchases Name Intelligence

It’s official: domain monetization and management firm purchases Name Intelligence.

If “Thought Convergence” and “Name Intelligence” don’t mean anything to you, perhaps these two names will: TrafficZ and DomainTools. Thought Convergence, the parent firm of TrafficZ, has purchased Name Intelligence, which is perhaps best known for its DomainTools services.

Domain Name News first broke this story last month, but neither party would confirm the pending buyout until this morning.

Thought Convergence has been a major sponsor of Name Intelligence (NI) events counting Domain Roundtable, so they’ve had a cozy relationship for a while. Why would Thought Convergence acquire Name Intelligence? Here are many reasons:

1. Eyeballs. DomainTools is one of the top 1,000 web sites on the internet as stated by Alexa and Compete. Think of all the marketing power this brings to Thought Convergence.

2. Registered users. I understand that TrafficZ generates a ton of cash. But I think it does it with a relatively modest user base compared to some other parking firms. DomainTools, on the other hand, has a huge stable of loyal registered users that the firm can tap into.

3. Analytics. DomainTools is all regarding analytics, and you better believe that will help Thought Convergence in its business.

4. High power relationships. Name Intelligence has a deal with Google to link directly to whois information in Google results when someone searches ‘whois domain.com’. This could be just the start of a bigger relationship. (Wait a minute — isn’t TrafficZ a Yahoo partner?)

Now for some of the downside and questions that will be asked, similar to when Oversee bought SnapNames and Moniker.

1. Ought to other domain parking firms sponsor Domain Roundtable going forward?

2. How will NI founder Jay Westerdal do when he’s not the number one decision maker? He’s counting a wad of cash right now, but that feeling wears off quickly.

3. Many of DomainTools’ clients are sizable firms that use its service to go following domain owners. Does this create a conflict of interest?

What other benefits does this bring? Drawbacks? Please provide your two cents.