$70m bid for Rightside

A tussle between two of the largest companies running new internet extensions has broken out, with Donuts offering $70m in cash for part of competitor Rightside.

According to a letter from Donuts CEO Paul Stahura, made public on Friday, the company has requested a meeting to discuss a possible purchase of Rightside's generic top-level domains, but has been repeatedly rebuffed.

Donuts claims to be able to "unlock substantial value" in the company by splitting off its registry arm (the internet extensions) from its registrar arm (companies that sell names under those extensions).

Donuts is currently the largest holder of internet extensions and is seeking to grow its market share. As a publicly listed company, Rightside is obligated to maximize stakeholder value, and so Donuts has pitched its offer accordingly. Whether its claims are accurate, Rightside's board will need to decide. ®