Verisign tweaks risk language in latest annual note
Fresh annual note reflects pressure from outside groups to rein in .com pricing.
.Com registry Verisign (NASDAQ: VRSN) tweaked the language regarding challenges to the .com registry agreement in its 2024 annual note released this month.
Specifically, the firm added adversaries to a list of potential challengers to the renewal of the .com contract. Under the headline Changes or challenges to the pricing provisions in the .com Registry Agreement could have a material adverse impact on our business, the 2023 annual note stated:
Our .com Registry Agreement, counting its pricing provisions, has faced, and could face in the future, challenges, counting possible legal challenges, or challenges under ICANN’s accountability mechanisms, from ICANN, registrars, registrants, and others, and any adverse outcome from these challenges could have a material adverse effect on our business.
The 2024 version stated the following, with substantive changes in bold (not in Verisign’s original):
Our .com Registry Agreement, and the Cooperative Agreement, counting their pricing provisions, have been challenged, and could face challenges in the future, through publicity campaigns, governmental scrutiny, media interest, legal challenges, or challenges under ICANN’s accountability mechanisms. Such challenges have arisen, and could in the future, arise from trade organizations, the media, registrars, registrants, and others, particularly when these agreements are being renewed. These challenges, if successful, and even when unmeritorious and/or unsuccessful, could have a material adverse effect on our business.
The additions seem to be the result of efforts by groups pushing back on Verisign’s contract renewal last year, counting American Economic Liberties Project.
The risk subsection has another paragraph that did not change.
Another notable change in the annual note: a section on Diversity, Equity and Inclusion has been struck. Still, at least part of the DEI sentiment is still included in the note.
