On 27 January 2016, Power Auctions LLC, ICANN‘s authorized auction service provider, conducted a New gTLD Program Auction to resolve string contention for one new generic top-level domain (gTLD) contention set: .SHOP.
This set was previously identified as an indirect contention set consisting of both the .SHOP and .SHOPPING strings. The applicants for .SHOPPING have resolved their contention amongst themselves, eliminating the linkage between .SHOP and .SHOPPING. The remaining contention set is a direct contention set for the string .SHOP. The applicants were unable to resolve contention among themselves; thus their contention set proceeded to auction, which is the method of last resort to resolve string contention as prescribed in Module 4 of the New gTLD Program Applicant Guidebook. Subject to payment of the winning price and meeting all other criteria for eligibility, the winner will enter ICANN‘s contracting process to sign a Registry Agreement to operate the gTLD.
Seven applicants completed all necessary prerequisites and participated in the auction for .SHOP. GMO Registry, Inc., applicant for .SHOP, prevailed with a winning price of $41,501,000.
All proceeds from the Auction are being segregated and withheld from use until ICANN‘s Board of Directors define a plan for an appropriate use of the funds through consultation with the community.
That is a terrific name ending but it’s going to be a very long road to economic payback. The name of the game in domain names is the same whether you participate as a gritty domainer or the biggest registry. Buy low sell high.
I don’t see them breaking even in less than 10-15 years.
And that is the good scenario…
I think they will probably never breakeven on that … fools’ money! 🙂
I thought if an extension comes down to bidding that the losers get to split the winner’s bid. Don’t the 6 losers in the auction get the $41 million?
Not in the ICANN auction! ICANN gets all the money.
What you describe happens in the private auctions ONLY! 🙂
Ah, thanks for clarification. You would think everyone would agree for private auction then instead of ICANN auction. ICANN does nothing and gets $41 million, what a scam.
Yahh! no more 18 cent icann fee i guess, now that they just got a $41M payday for flipping the switch on