Verisign has its contract approved by US Department of Commerce, but with no more price increases. With this, the share price dropped off sharply by 13.19%.
Verisign’s current pricing of $7.85 per domain name registration will continue for the six-year term of the Agreement, and the company no longer has the right to four price increases of up to seven percent over the six-year term. The company will only be able to increase prices with prior DoC approval in response to “extraordinary” circumstances.
Companies that have to engage in dozens of thousands of defensive registrations – such as Microsoft with its 91,000 domains – will surely benefit from the terms of the new contract, as well as domainers that have large portfolios.
Verisign's stocks are already trading down 13.19%.
