A private equity firm now runs .org, the domain for nonprofits
A private equity firm will soon run the internet’s top domain name extension for nonprofits after purchasing the nonprofit organization that runs it.
Public Interest Registry (PIR), which runs the .org domain registry, has been sold to private equity firm Ethos Capital, according to the registry’s parent organization, Internet Society. The price of the acquisition is still unknown.
The .org domain name has been maintained by PIR since 2002. Internet Society was awarded the contract by ICANN (Internet Corporation for Assigned Names and Numbers) and created PIR to run the extension.
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Earlier this summer, Mashable covered the ongoing battle between ICANN and .org domain registrars and registrants after the organization that oversees the web domain system decided to lift the long-established price cap in its .org contract with PIR.
Registrars, the companies authorized to sell domain registrations to consumers, and those with established .org websites worried that lifting the price cap would result in indeterminable registration pricing and yearly renewal price increases.
Prior to the change, nonprofits like AARP, NPR, and YMCA put out a joint statement during an ICANN open comment period opposing the price-cap removal, specifying that it would hit organizations most vulnerable to uncertainty in their budgets. Despite the overwhelming opposition, ICANN decided to lift the cap anyway. The current price per registration is around $10 a year.
There is now concern over the PIR acquisition and its correlation with the .org price cap removal.
"Obviously we are disturbed by the timing of this transaction and how it reflects on the decision by ICANN to lift price caps,” said Namecheap CEO Richard Kirkendall in a statement to Mashable on the PIR sale.
Kirkendall has been one of the leading voices opposing the .org price cap removal.
“While we all as registrars will be negatively affected by this sale, the biggest losers will be our customers, particularly those associated with nonprofit organizations as well as all other .org holders who are sure to see their renewal prices increase,” he continued.
In a statement to Mashable in August, PIR CEO Jon Nevett told us that “concerns raised by self-interested parties about exorbitant .ORG price increases are inaccurate and unfounded.”
“We ourselves are a nonprofit, and we are driven by our mission of serving the public interest online,” said Nevett. “Public Interest Registry has served as the nonprofit registry operator for .ORG for more than 15 years and in that time, we have always strived to be thoughtful and responsible stewards of the Internet’s most trusted and admired top-level domain. Our stewardship of .ORG will continue in the exact same manner for years to come.”
Just months later, PIR has been sold to a private equity company that will probably not retain the same values of a nonprofit and instead look to raise .org registration prices to make money.
“Since the inception of Public Interest Registry, our mission has been to enable the .ORG Community to use the Internet more effectively and change the world for the better,” said PIR CEO Nevett In a public statement on the acquisition. “That will not change. We have enjoyed a long and successful relationship with the Internet Society, and are thrilled that we will be able to continue – and expand – our important work with Ethos Capital while sustaining our commitment to the .ORG Community going forward.”
In a post on the acquisition, the Internet Society writes:
“Today’s news has tremendous benefits for both the Internet Society and PIR. The transaction will help the Internet Society to secure its future through more stable, diversified and sustainable financial resources than it has at present, allowing the organization to plan for the long term and advance its vision of an Internet for everyone on an even broader scale. It will also enable PIR to continue expanding its mission and important work under new ownership — including its goal of keeping .ORG accessible and reasonably priced — while further strengthening and deepening its commitment to the .ORG Community.”
The wording “keeping .org...reasonably priced” is a bit different than “Public Interest Registry has no plans to increase the current price for .ORG, which is less than $10,” which we were told just 3 months ago.
“When policy decisions impact consumers negatively, it's time to take a serious look as to why and make changes to protect them,” Namecheap CEO Kirkendall tells us. "We hope ICANN will go back and review their decision and policies as a whole so that their first focus is to protect the rights and the best interests of the consumer.”
