08 May 2014

Will the NTIA Decision Hurt VeriSign?

"The U.S. government's plan of relinquishing control of the system for assigning website addresses is expected to hurt VeriSign 's ( VRSN ) growth prospects going forward." (source infra)

Will the NTIA's Decision Hurt VeriSign? - Analyst Blog - NASDAQ.com: " ... VeriSign, which operates the infrastructure for the .com, .net and.gov, stated that the NTIA decision will not affect its operations in any way as its Internet functions are much different from those included in the announcement. Further, the company clarified that functions performed by VeriSign that come under the purview of the NTIA announcement have been performed as a community service spanning three decades without compensation and hence their non-renewal will not affect profitability going forward. Nevertheless, this announcement seems to be a major setback for VeriSign. It is likely to be an overhang on the registration business, which is a major contributor of revenues (contributed nearly $1.0 billion revenue in 2013)....."

Of course, there is still the unanswered question of how Verisign is going to avoid antitrust liability after the US Department of Commerce walks away from its oversight.

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