Kirkland-based Rightside Group Ltd. today confirmed an unsolicited offer to acquire the company from Donuts, Inc., to the tune of $70 million cash. According to a statement from Bellevue-based Donuts, the company has posed multiple offers to Rightside in the past that have been turned down.
“Donuts is the optimal acquirer for Rightside’s registry business given Donuts’ leadership in the marketplace, the parties’ long-standing business relationship, our shared technology platform, and regulatory considerations, all of which ensure the highest certainty of deal closure,” the company said in a statement.
Rightside Group spun off from its parent company, California-based Demand Media, and began trading on the NASDAQ in August 2014 under the “NAME” symbol. Rightside’s stock price opened this morning at $9.20 and closed at $9.22 after dropping as low as $8.58 following Donut’s morning announcement.
“Rightside appreciates Donuts’ interest in these assets and also shares their enthusiasm for the registry business. The company’s board of directors and management team remain committed to maximizing long-term shareholder value and as such they will evaluate any proposal to determine whether it is in the best interests of the company and its shareholders,” the company wrote in a statement.
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