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new gtlds Rightside’s net cost of 39 TLDs: $16 million

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Arpit131

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Company has spent $52 million acquiring new names, but its net cost is much lower.

One thing to keep in mind is that for each private auction, all of the losers win. The winner’s payment is paid out to the losers (less administrative fees). This changes the dynamic of the entire program.

The company has spent $52 million to acquire its 39 top level domain names. At first glance, it appears that the company spent about $1.33 million per TLD.

But the company has received $36 million from withdrawing applications. This lowers the net cost to $16 million, or just over $400,000 per string.


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They need to redo their math or something, because that same page has another article:
Rightside posts profit, gets $7.2 million from withdrawing new TLDs

"the company has received $36 million from withdrawing applications."

They spent $52 million to acquire its 39 top level domain names.

So they probably spent $88million to get more than 39 top level domain names. The other ones failed and they got $36 million back to bring their investment back down to $52million. Not very clear.

The article doesn't make sense how it is written.
 
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