Ecommerce Blog

Memo to private equity investors: Get your checkbooks ready, for VeriSign (VRSN) might have some businesses to put on the block.

VeriSign, the Mountain View, Calif.-based domain name registry manager, is in the middle of a major restructuring under the aegis of its new chief executive, William Roper Jr., who replaced Stratton Sclavos back in May. The company, like many others, also recently had to restate several years worth of results following a review of its historical stock option grants practices.

We’ve gotten hold of an internal email showing that Roper is planning to undo some of the expansion moves initiated by Sclavos and instead focus the company on profitability and growth. Sclavos’ regime had been all about growing revenues; to that end VeriSign diversified into many different areas — including mobile gaming, via their acquisition of Jamster.

On August 7, we submitted our 2008 Business Strategy to the Board of Directors for review, and it was approved. This strategy, the development of which began earlier this year as part of Project ONE, will among other things enable us to focus on our core strengths in DNS and SSL, as well as three select areas of growth opportunity: VeriSign Identity Protection (VIP), Messaging, and our Content Delivery Network (CDN). As I’ve said before, focus requires that we concentrate on doing a few things exceptionally well — and that’s exactly what we intend to do.

After talking to some well-placed sources, we have learned that the DNS and SSL businesses are cash cows that don’t need much of a sales team effort and continue to be highly profitable. They provide a stable foundation for VeriSign, which is why the company continues to keep them around.

In addition, VeriSign is experiencing rapid growth in its SMS-based services — it’s the SMS polling infrastructure provider, for some of the hit reality shows.

Roper Jr. has been telling Wall Street lately that he’s ready to get rid of VeriSign’s telecom operations, especially the businesses related to billing and payment. The company’s also exiting the managed security service business and its RFID-related operations. And it’s shedding businesses including Moreover Technologies and Weblogs.com, both of which it acquired in 2005. It is not clear who the buyers will be, but they are up for grabs our sources say.

Selling these business, according to Pacific Crest Securities analyst Rob Owens, could bring in some $1 billion in cash, which would allow the company to invest in the cash-intensive but fast growing CDN business.

Of course, it could also use some of that cash to improve its reputation of being a Web bully.

Memo to private equity investors: Get your checkbooks ready, for VeriSign (VRSN) might have some businesses to put on the block.

VeriSign, the Mountain View, Calif.-based domain name registry manager, is in the middle of a major restructuring under the aegis of its new chief executive, William Roper Jr., who replaced Stratton Sclavos back in May. The company, like many others, also recently had to restate several years worth of results following a review of its historical stock option grants practices.

We’ve gotten hold of an internal email showing that Roper is planning to undo some of the expansion moves initiated by Sclavos and instead focus the company on profitability and growth. Sclavos’ regime had been all about growing revenues; to that end VeriSign diversified into many different areas — including mobile gaming, via their acquisition of Jamster.

On August 7, we submitted our 2008 Business Strategy to the Board of Directors for review, and it was approved. This strategy, the development of which began earlier this year as part of Project ONE, will among other things enable us to focus on our core strengths in DNS and SSL, as well as three select areas of growth opportunity: VeriSign Identity Protection (VIP), Messaging, and our Content Delivery Network (CDN). As I’ve said before, focus requires that we concentrate on doing a few things exceptionally well — and that’s exactly what we intend to do.

After talking to some well-placed sources, we have learned that the DNS and SSL businesses are cash cows that don’t need much of a sales team effort and continue to be highly profitable. They provide a stable foundation for VeriSign, which is why the company continues to keep them around.

In addition, VeriSign is experiencing rapid growth in its SMS-based services — it’s the SMS polling infrastructure provider, for some of the hit reality shows.

Roper Jr. has been telling Wall Street lately that he’s ready to get rid of VeriSign’s telecom operations, especially the businesses related to billing and payment. The company’s also exiting the managed security service business and its RFID-related operations. And it’s shedding businesses including Moreover Technologies and Weblogs.com, both of which it acquired in 2005. It is not clear who the buyers will be, but they are up for grabs our sources say.

Selling these business, according to Pacific Crest Securities analyst Rob Owens, could bring in some $1 billion in cash, which would allow the company to invest in the cash-intensive but fast growing CDN business.

Of course, it could also use some of that cash to improve its reputation of being a Web bully.

In what has to be the worst PR moves of all time, General Atlantic, a New York-based hedge fund, announced that it was backing a new buyout fund started by Jon Miller, former CEO of AOL and Ross Levinsohn, former President of Fox Interactive.

No details on the size of the fund were offered. TechCrunch says that some reporters might have been sniffing around the story and GA decided to rush the release in order to control the message.

Reporters from Wall Street Journal perhaps? The Journal says the new company is called Velocity Investment Group and will be looking to roll up at consumer Internet and media companies, including advertising networks. WSJ says that they already have signed up letter of intent with some companies.

How long before we see more of these roll-up vehicles show up and start buying up high-traffic properties, a strategy that was pioneered by IAC’s Barry “Get Me A Bargain” Diller?

I am still thinking a lot about David Boschmans lately. He was our gracious host in Belgium when we visited in December of 2005. Spent a lot of time driving Maryam and me around and hosting dinners and having us speak at Microsoft and other places. Proudly talked about his new family (he has a two-year-old daughter, he was so proud of her). Shared more than one beer with us and was clearly liked and trusted by lots of geeks in Belgium. Here’s a picture of me with David.

Two weeks ago he died unexpectedly in his sleep. He was 32.

His death hit me and Maryam hard. Harder than other tragedies in the tech world have hit me lately.

It gets down to who is a “real friend” and who is an “online friend.” David was an online friend who turned real over beers in Brussels.

He also reminded me that every day is a gift. I’ve had 10 more years of those gifts than he’s had. He did a lot in his short time here.

I look around the Web and see the love for David from around the world. Tom Raftery, Ireland’s top tech blogger, wrote about him. Roy Osherove, one of my favorite bloggers in Israel, did a video for him.

If you search Google for his name you’ll see page after page of people who were touched by David. Nathan Weinberg links to lots of the best stuff about David.

Anyway, what are you doing with today? That’s what David keeps asking me.

Today I’m thinking about a guy who took a few days out of his life to make sure we had a good time in a foreign land. He had a new daughter at home and, I’m sure, plenty of better things to do. The memories of him are among my most prized possessions. Worth more to me than an iPhone or an HDTV. It’s why I love traveling the world and hanging out with geeks.

I’m honored to have shared a beer with him and he definitely left a void in the tech world that won’t easily be filled. Thank you David!

I am still thinking a lot about David Boschmans lately. He was our gracious host in Belgium when we visited in December of 2005. Spent a lot of time driving Maryam and me around and hosting dinners and having us speak at Microsoft and other places. Proudly talked about his new family (he has a two-year-old daughter, he was so proud of her). Shared more than one beer with us and was clearly liked and trusted by lots of geeks in Belgium. Here’s a picture of me with David.

Two weeks ago he died unexpectedly in his sleep. He was 32.

His death hit me and Maryam hard. Harder than other tragedies in the tech world have hit me lately.

It gets down to who is a “real friend” and who is an “online friend.” David was an online friend who turned real over beers in Brussels.

He also reminded me that every day is a gift. I’ve had 10 more years of those gifts than he’s had. He did a lot in his short time here.

I look around the Web and see the love for David from around the world. Tom Raftery, Ireland’s top tech blogger, wrote about him. Roy Osherove, one of my favorite bloggers in Israel, did a video for him.

If you search Google for his name you’ll see page after page of people who were touched by David. Nathan Weinberg links to lots of the best stuff about David.

Anyway, what are you doing with today? That’s what David keeps asking me.

Today I’m thinking about a guy who took a few days out of his life to make sure we had a good time in a foreign land. He had a new daughter at home and, I’m sure, plenty of better things to do. The memories of him are among my most prized possessions. Worth more to me than an iPhone or an HDTV. It’s why I love traveling the world and hanging out with geeks.

I’m honored to have shared a beer with him and he definitely left a void in the tech world that won’t easily be filled. Thank you David!