A
Andrew Allemann
Guest
Company will separate NPAC contract from the rest of its business.
Neustar, which operates domain name registry services for .co, .biz and many others, is splitting into two publicly traded companies.
The move comes as the company’s stock (NYSE:NSR) has fluctuated wildly in recent years as the company tried to retain its Number Portability Administration Center (NPAC) contract.
The NPAC contract with the government is akin to Verisign’s contract to run .com; it provides stable revenue and makes up a good chunk of its business.
Neustar is losing the $500-million-a-year NPAC contract, but it’s not clear when the transition will take place. It’s also suing to try to retain the contract.
Since the NPAC contract represents half of the company’s revenues, any movement in the transition date can have a big effect on its stock price.
The other half of Neustar’s business is marketing services, domain name registries, internet security and some other telecom services. The company has built this business up as its prepares for losing the NPAC contract.
The proposed split will enable people to essentially bet on the future of the NPAC contract (and a few related revenue streams) and Neustar’s other businesses separately.
The part of the company with the NPAC contract will retain the Neustar name and the other part will be rebranded under the leadership of Paul Lalljie, currently Senior Vice President and Chief Financial Officer of Neustar.
The split will probably take a year to complete.
© DomainNameWire.com 2016. This is copyrighted content. Domain Name Wire full-text RSS feeds are made available for personal use only, and may not be published on any site without permission. If you see this message on a website, contact copyright (at) domainnamewire.com.
Latest domain news at DNW.com: Domain Name Wire.
The post Neustar to split into two companies. Here’s why appeared first on Domain Name Wire | Domain Name News & Views.
Related posts:
Continue reading...
Neustar, which operates domain name registry services for .co, .biz and many others, is splitting into two publicly traded companies.
The move comes as the company’s stock (NYSE:NSR) has fluctuated wildly in recent years as the company tried to retain its Number Portability Administration Center (NPAC) contract.
The NPAC contract with the government is akin to Verisign’s contract to run .com; it provides stable revenue and makes up a good chunk of its business.
Neustar is losing the $500-million-a-year NPAC contract, but it’s not clear when the transition will take place. It’s also suing to try to retain the contract.
Since the NPAC contract represents half of the company’s revenues, any movement in the transition date can have a big effect on its stock price.
The other half of Neustar’s business is marketing services, domain name registries, internet security and some other telecom services. The company has built this business up as its prepares for losing the NPAC contract.
The proposed split will enable people to essentially bet on the future of the NPAC contract (and a few related revenue streams) and Neustar’s other businesses separately.
The part of the company with the NPAC contract will retain the Neustar name and the other part will be rebranded under the leadership of Paul Lalljie, currently Senior Vice President and Chief Financial Officer of Neustar.
The split will probably take a year to complete.
© DomainNameWire.com 2016. This is copyrighted content. Domain Name Wire full-text RSS feeds are made available for personal use only, and may not be published on any site without permission. If you see this message on a website, contact copyright (at) domainnamewire.com.
Latest domain news at DNW.com: Domain Name Wire.
The post Neustar to split into two companies. Here’s why appeared first on Domain Name Wire | Domain Name News & Views.
Related posts:
- Go Daddy, Neustar, IPC Say No to Nairobi Meeting
- Neustar reports earnings, .Co grossed $4.4 million last quarter
- Kellie Peterson joins Neustar
Continue reading...
