GoDaddy loses .co contract to TIG partnership: Big news
Registry contract will transition to Team Internet’s registry backend in partnership with Colombian domain registrar.
Following 15 years, the rights to operate Colombia’s .co domain name extension is changing hands.
The country has awarded a 10-year contract to manage the popular domain to Equipo PuntoCo, a newly formed joint venture between Team Internet (AIM: TIG, OTCQX: TIGXF) and CCI REG, a Colombian domain name registrar.
.Co Internet began commercialization of the domain name in 2010, making the extension a household name through savvy marketing and a Super Bowl commercial.
Neustar purchased .Co Internet for $109 million in 2014.
When the contract renewal came up for bid six years later, Neustar argued it had a right to a 10-year extension and filed a $350 million claim with Colombia’s government.
The parties settled the dispute, with Neustar gaining a five-year extension. The terms of the contract were drastically different from the first one; the government stated that it received regarding 6%-7% of revenues under the previous model and would receive 81% under the contract extension.
Shortly following getting the extension in 2020, Neustar sold its registry business to GoDaddy.
Under the fresh contract, PuntoCo will retain just 8% of gross revenues.
GoDaddy (NYSE: GDDY) competed for the renewal, along with Identity Digital and Radix.
There are over 3 million registered .co domain names. It will be interesting to see what impact losing some of GoDaddy’s marketing muscle will have on the extension.
