The PIR sale...Now we are talking about real money!

[Martin Pablo Silva Valent]

I love to see this analysis, it really begins some sense to the data!

> On 21 Nov 2019, at 14:02, Sam Lanfranco <lanfran at YORKU.CA> wrote:
> 
> Some rough back of the envelope calculations are useful here.. There are over 10 million .org registrations. One way of measuring the windfall (economic rent) value of acquiring PIR as a for-profit registry is to look at the capitalized (present value) of various registration rate increases.  That involves using a discount rate to discount future revenue flows. Two rates are typically used. One is the interest rate for borrowed funds, and the other is the expected normal profit rate on investment.
> 
> With depressed central bank lending rates, long term US government bonds are yielding between 2% and 3%. Expectations around normal profits range in the 10% level, so here are two benchmark discount rates to explore the present value of .org registration price increases. Note, this is over and above the current value of PIR as the owner of .org and charging existing fees. It reasonably assumes no additional costs. The revenue figures are what comes out of the pockets of .org domain holders, and the present value is the enhanced asset position accruing to the owners of PIR.
> 
> As the numbers suggest, we are talking about real money here….!
> 
> One time Price Increase
> Additional Annual Revenue: (from .org holders)
> Increased Present Value to owners @ 3% discount rate
> Increased Present Valueto owners @ 10% discount rate
> $1.00
> $10,000,000
> $334 Million
> $100 Million
> $5.00
> $50,000,000
> $1.67 Billion
> $500 Million
> $10.00
> $100,000,000
> $3.34 Billion
> $1 Billion
>  Sam L. 
> 

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