Neustar $NSR Decides to Split the Company, Investor Webcast Replay

Neustar $NSR stock chart (source: google.com) - stock down over 56% since Aug 2, 2013

In less than three years, Neustar (NYSE: NSR) (domain: neustar.biz) has lost over half of its shareholder value as the chart above indicates, primarily due to the pending loss of its very profitable NPAC contracts. The technology company, which includes domain name registry services (.us, .biz, .co, new gTLDs, etc.), has made the decision to "separate into two independent publicly traded companies: 

• Separation to maximize shareholder value by creating two highly focused companies, intended to be structured as a tax-free spin-off likely to occur over the next 12 months
• One company will focus on Information Services including Marketing, Security and related Data Services (including domain registry services), while the other company will focus on Order Management & Numbering Services, including NPAC Services."

Lisa Hook, currently President and Chief Executive Officer of Neustar, will serve as President and Chief Executive Officer of the Information Services company, which will be rebranded with a new name. Paul Lalljie, currently Senior Vice President and Chief Financial Officer of Neustar, will serve as President and Chief Executive Officer of the Order Management & Numbering Services company, which will retain the Neustar name.

Neustar provided the following information with the announcement:

• Press release;
• Fact sheet (pdf) and announcement fact sheet (pdf) available via webcast (below);
• SEC filing;
• Infographic (an excerpt of which is below);
• Conference call replay available through 11:59 p.m. (Eastern Time) on June 28, 2016 by dialing 1-877-870-5176 (international callers dial 1-858-384-5517) and entering replay PIN 2254013, or by going to the Investor Relations tab of the Company’s website (www.neustar.biz)--Webcast Presentation Click here for webcast replay;
• Any potential separation, which will be subject to final approval by the Neustar Board of Directors, is likely to take approximately 12 months to complete;
• Completion of the transaction is subject to a number of customary conditions, including effectiveness of the Form 10 to be filed with the SEC. Additionally, as the company evaluates the preferred transaction structure, it continues to assess what regulatory and other approvals, if any, may be required to complete the transaction;
• Neustar has retained J.P. Morgan as financial adviser and Gibson, Dunn & Crutcher LLP and Goodwin Procter LLP as legal counsel in connection with the proposed spin-off.

Infographic excerpt (source: neustar.biz) 

See also on Domain Mondo:

• ... Neustar $NSR ... Q1 2016 ... April 28, 2016
• Neustar $NSR Q4 2015 Financial Results, LIVE Webcast Feb 4, 4:30pm ET Feb 4, 2016
• Caveat Emptor: Neustar MarketShare Acquisition, 2016 $NSR Guidance Dec 10, 2015
• Investors Flee Neustar, $NSR Stock Down 19% in Five Trading Days Nov 12, 2015
• Neustar $NSR Shares Tanked Friday After Marketshare Announcement Nov 09, 2015
• Neustar $NSR Will Lose $500 Million Annual Revenue, 80% Downside? Oct 29, 2015
• Neustar Buys Bombora and ARI Registry Services for US$87 Million Jul 31, 2015
• Domain Name Registry Operator Neustar After Losing FCC Vote: Mar 30, 2015

See also on SeekingAlpha.com (subscription):

• NeuStar: Costly Acquisition Strengthens Bear Case by John Zhang 
• Neustar: 80%+ Downside Within 13 Months by John Zhang 
• NeuStar Is Not Good For Your Portfolio by Focus Equity 

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DISCLAIMER

Cybersecurity Firm IID Predicts New gTLD Websites Will 'Go Dark'

Cybersecurity firm IID says it "anticipates a spate of new gTLD failures, leading to demise of websites relying on them"--

"When the Internet Corporation for Assigned Names and Numbers (ICANN), which oversees the Domain Name System, began the process to issue hundreds of new gTLDs in 2013, the possibilities seemed limitless. Today, gTLDs run the gamut from “.apartments” to “.dentist” to “.porn” and so on. But looking ahead, many of these TLDs, as well as websites and other services that rely on them, could be short-lived because their adoption has been much smaller than anticipated.

"IID anticipates an unprecedented series of domain registry failures as a result of the lack of gTLD popularity by 2017 in the form of bankruptcies and abandonment. “Most new gTLDs have failed to take off and many have already been riddled with so many fraudulent and junk registrations that they are being blocked wholesale,” said IID President and CTO Rod Rasmussen. “This will eventually cause ripple effects on the entire domain registration ecosystem, including consolidation and mass consumer confusion as unprofitable TLDs are dropped by their sponsoring registries.”

"Should a gTLD go down, it would take any resident websites, email or other services with it, forcing their owners to scramble for new virtual real estate. There is a process in place to continue support of struggling registry operations until a larger registry or organization buys them in auction and rescues them. However, questions abound as to who would risk an investment in poorly performing TLDs, especially as they start to number in the hundreds. “That’s why eventually some are going to just plain go dark,” added Rasmussen." (source: IID; emphasis added)

IID is a cybersecurity company. Its flagship product, ActiveTrust, is one of the world’s largest commercial cyberthreat data exchanges. Domain name: internetidentity.com.

On Twitter: @iidactivetrust
Tweets by @iidactivetrust

See also on Domain Mondo: 

• Blocking New gTLDs, ICANN's 'Shadiest' Top-level Domains, Wholesale
• Security Firm [Blue Coat] Recommends Blocking ICANN's "Shadiest" New gTLDs

Caveat Emptor!

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DISCLAIMER

New gTLDs Domain Registry Rightside (NAME) Stock Hits Low of $6.54

In what seems to be a continuing saga of bad news for ICANN's new gTLDs (new generic top-level domains), leading new gTLD Registry operator, Rightside (NASDAQ: NAME) stock hit an intra-day low today of $6.54--see chart above--(the stock's all-time low is $6.42), finally closing at $6.80, down 0.40 (5.56%). It's been a rough ride for NAME stockholders since Rightside was spun off from Demand Media last year--the stock hit a high of $17.00 last year at the height of new gTLDs hype and mania and it's been mostly declining since then (see chart below). While there appeared to be no news affecting the stock, recent SEC filings, here and here, have raised questions. At least one commentator has speculated that the stock might become a "takeover candidate."

1 year chart of Rightside stock - NASDAQ: NAME - chart source: google.com

Note: See disclaimer at the bottom this webpage and here. Neither Domain Mondo's owner, publisher, editor, nor the author, have any interest, long or short, in Rightside (NAME) stock.

See also on Domain Mondo:

• New gTLD Domains, the Walking Dead and Dying, ICANN FY15 Results
• ICANN's New gTLD Domains Are Failing Badly, 2015 May Be Even Worse

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