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A Credit Suisse financial analyst is lowering his estimates for Verisign in part because he thinks Google's moves to clean its AdSense network of domain arbitrageurs will hurt domain sales.
Anyone here have thoughts on this?
[edited by: encyclo at 10:14 am (utc) on Mar. 25, 2008]
[edit reason] fixed side-scroll [/edit]
"The PPC advertising market is driving domain name registration growth
as registrants register domain names that contain meaningful terms or
attract traffic. These registrants generate revenue by enhancing resale value of the domain name or by placing PPC advertisements on a parked page. The company that serves the advertisements shares revenue with the domain name registrant according to a negotiated split."
"The Google AdSense program and other programs like that, that's
spurring on the increased, rapid purchase of domain names in the U.S.," said Raynor Dahlquist, VeriSign name services group acting vice
So I'm still back to my original question: does G's crackdown on AdSense arbitrageurs hurt VRSN? I've got to think that if AdSense growth (much of which was arbitrage) has *helped* Verisign - something Verisign execs themselves claim - then it stands to reason that G's clampdown is gonna hurt Verisign.
Any other opinions?
"...after all that analysis, Winslow’s estimate change is based not on slowing domain-name growth, but rather on the rate at which VeriSign is getting rid of some other parts of its business"