How much does it cost to acquire an existing new gTLD Registry?

Acquiring an existing new gTLD Registry is a different ball game compared to applying for a new one from ICANN. It's essentially a business acquisition, and the price will vary dramatically based on several key factors:

1. The gTLD String Itself:
   • Popularity/Brandability: Generic, short, and highly desirable strings (e.g., .app, .shop, .web) command enormous prices because they have broad appeal and high potential for domain registrations.
   • Specificity/Niche: More niche or specific gTLDs (e.g., .florist, .plumbing, .museum) will generally be less expensive, as their market is smaller.
   • Perceived Value: Some gTLDs are seen as "premium" due to their potential for high-value domain names or specific industry targeting.
2. Number of Active Registrations:
   • This is often the most significant factor. A gTLD with a large and growing base of active domain registrations represents a stable revenue stream for the registry. The more domains registered, the more valuable the registry.
   • A gTLD with very few registrations will be worth significantly less, as the buyer is primarily acquiring the "right" to operate it and then must invest heavily in marketing to build up the registration base.
3. Revenue and Profitability:
   • Is the registry currently profitable? What are its wholesale pricing structures for registrars? Are there premium domains being sold at higher prices?
   • Buyers will assess the existing revenue streams from renewals, new registrations, and premium sales.
4. Existing Infrastructure and Operations:
   • Does the registry have a robust and reliable backend system? Are its contracts with its Registry Service Provider (RSP) favorable?
   • Are there any existing legal disputes or compliance issues with ICANN?
   • A well-run, compliant operation is more valuable.
5. Market Dynamics and Competition:
   • Is the gTLD in a crowded space, or does it have a unique selling proposition?
   • What are the opportunities for growth in its specific market segment?
6. Owner's Motivation:
   • Is the current owner distressed and looking for a quick sale, or are they holding out for a top price? This can significantly influence negotiations.

Examples of Past Acquisitions (to give you a sense of scale):

While direct sales figures for private gTLD acquisitions are often confidential, the ICANN auctions from the 2012 round provide the best public indicators of the potential value of generic strings when multiple parties compete:

• .web: Famously sold for $135 million USD in a private auction after multiple applicants competed. This was acquired by Nu Dot Co LLC, backed by Verisign.
• .app: Sold for $25 million USD to Google.
• .shop: Sold for $41.5 million USD.
• .tech: Sold for $6.76 million USD.
• .realty: Sold for $5.58 million USD.

These are examples of highly generic and desirable strings, often with significant existing and potential registration numbers. Acquiring a less generic or less successful new gTLD would likely be in the hundreds of thousands to a few million dollars range, depending on its specific performance and future potential.

In essence, there is no "average" cost. It's a negotiated price based on the specific assets, revenue, and future potential of that particular gTLD registry. It requires extensive due diligence on the part of the buyer.