<div dir="ltr"><div class="gmail_default" style="font-family:verdana,sans-serif">I suggest we need a balance. We can't be totally zeroed in on the Ethos Capital deal, but neither can we be transaction-agnostic. There are things to say about this particular transaction and things to say about the bigger picture. We need to address both, albeit with a largely forward-looking focus (i.e., what should be done).</div><div class="gmail_default" style="font-family:verdana,sans-serif"><br></div><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><font face="trebuchet ms, sans-serif">Greg Shatan</font><div><a href="mailto:greg@isoc-ny.org" target="_blank"><font face="trebuchet ms, sans-serif">greg@isoc-ny.org</font></a></div><div><font face="trebuchet ms, sans-serif">President, ISOC-NY</font></div><div><font face="trebuchet ms, sans-serif"><i>"The Internet is for everyone"</i></font></div></div></div></div></div></div></div></div></div></div><br></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Mon, Jan 13, 2020 at 3:11 AM Hadia Abdelsalam Mokhtar EL miniawi <<a href="mailto:Hadia@tra.gov.eg">Hadia@tra.gov.eg</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
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<div class="gmail-m_-8283708106322563764WordSection1">
<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)">Agree with Marita that it is better to keep our response owner neutral. Let our recommendations focus on the interest of the current registrants, the public
interest aspect and the trust that the end users need.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)">Hadia
<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt;font-family:Calibri,sans-serif;color:rgb(31,73,125)"><u></u> <u></u></span></p>
<p class="MsoNormal"><b><span style="font-size:10pt;font-family:Tahoma,sans-serif">From:</span></b><span style="font-size:10pt;font-family:Tahoma,sans-serif"> CPWG [mailto:<a href="mailto:cpwg-bounces@icann.org" target="_blank">cpwg-bounces@icann.org</a>]
<b>On Behalf Of </b>Greg Shatan<br>
<b>Sent:</b> Monday, January 13, 2020 8:19 AM<br>
<b>To:</b> Marita Moll<br>
<b>Cc:</b> CPWG<br>
<b>Subject:</b> Re: [CPWG] Fwd: Re: Reuters reports new cooperative formed to take over management of .ORG<u></u><u></u></span></p>
<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Based on my experience, this is how all private equity deals are financed. Since this is business as usual, I would not read much into it re: uncertainty. It has nothing to do with “shortfalls,” as Kevin Murphy surmised. In the go-go years,
it was not uncommon to see up to 80% financing, but banks are much more conservative now.<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">The thing that concerns me is that they are going to saddle PIR with the $360 million of debt. This is also not uncommon in PE deals, but this concept of “pushing down the debt” is one of the more toxic aspects of PE deals. I assume PIR
is debt-free now. Going from debt-free to owing more than 1/3 of a billion dollars is not a step in the right direction for any company. For a company that is allegedly going to embrace a public benefit approach, it is teeth-grindingly dissonant.<u></u><u></u></p>
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<p class="MsoNormal">The more this sounds like a “typical” PE deal, the more suspicious I get that there will be anything special about this PE firm or Post-Acquisition PIR. Instead it sounds like business as usual. That is not what is called for here.<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Greg<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">On Sun, Jan 12, 2020 at 6:23 PM Marita Moll <<a href="mailto:mmoll@ca.inter.net" target="_blank">mmoll@ca.inter.net</a>> wrote:<u></u><u></u></p>
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<p>Well, this information shows that the financing of this deal is not necessarily in the bag -- given that is mostly leveraged. These sorts of things can fall through. So our response has to be owner-neutral -- setting conditions for any new owner - IMHO<u></u><u></u></p>
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<p><u></u> <u></u></p>
<p>Marita<u></u><u></u></p>
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<p class="MsoNormal">On 1/12/2020 5:05 PM, Maureen Hilyard wrote:<u></u><u></u></p>
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<p class="MsoNormal">Hi Marita<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">And still lots more rumours and other information to come, no doubt.
<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">I think we should keep ourselves focused on what we have set out to do - to produce some constructive and forward thinking advice to the Board, along the lines that Ethos is the new owner and what we might suggest to ICANN (and PIR) about
preserving the interests of current and future .org registrants through the contractual processes and other recommendations.<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Otherwise we will be stuck in the same hole forever, as more information is thrown in.<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Maureen<u></u><u></u></p>
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<p class="MsoNormal">On Sun, 12 Jan 2020, 9:18 AM Marita Moll, <<a href="mailto:mmoll@ca.inter.net" target="_blank">mmoll@ca.inter.net</a>> wrote:<u></u><u></u></p>
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<p>More information on the Ethos PIR takeover revealed in response to ICANN questions.<u></u><u></u></p>
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<p class="MsoNormal">Marita<br>
<br>
-------- Forwarded Message -------- <u></u><u></u></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>Subject: <u></u><u></u></b></p>
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<p class="MsoNormal">Re: Reuters reports new cooperative formed to take over management of .ORG<u></u><u></u></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>Date: <u></u><u></u></b></p>
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<p class="MsoNormal">Sun, 12 Jan 2020 16:56:05 +0000<u></u><u></u></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>From: <u></u><u></u></b></p>
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<td style="padding:0in">
<p class="MsoNormal">Wisdom Donkor <a href="mailto:wisdom.dk@GMAIL.COM" target="_blank">
<wisdom.dk@GMAIL.COM></a><u></u><u></u></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>Reply-To: <u></u><u></u></b></p>
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<p class="MsoNormal">Wisdom Donkor <a href="mailto:wisdom.dk@GMAIL.COM" target="_blank">
<wisdom.dk@GMAIL.COM></a><u></u><u></u></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>To: <u></u><u></u></b></p>
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<p class="MsoNormal"><a href="mailto:NCSG-DISCUSS@LISTSERV.SYR.EDU" target="_blank">NCSG-DISCUSS@LISTSERV.SYR.EDU</a><u></u><u></u></p>
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<p class="MsoNormal" style="margin-bottom:12pt"><u></u> <u></u></p>
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<p class="MsoNormal">DomainIncite has provided a summary of these documents:<br>
<br>
<a href="http://domainincite.com/25176-25176" target="_blank">http://domainincite.com/25176-25176</a><br>
<br>
"here are the headlines:<br>
<br>
* The deal is being partly funded by an enormous loan.<br>
* Technically, Ethos isn’t the direct buyer. There are at least three corporate entities involved in the acquisition that we haven’t heard of before.<br>
* Ethos won’t reveal the names of the directors of PIR’s would-be owner.<br>
* Another former senior ICANN staffer and long-time Fadi Chehadé collaborator has been revealed as having an interest in the acquisition."
<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Cheers,<u></u><u></u></p>
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<p class="MsoNormal"><br clear="all">
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<p class="MsoNormal"><b>WISDOM DONKOR</b><u></u><u></u></p>
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<p class="MsoNormal"><span style="font-size:7.5pt">President & CEO</span><u></u><u></u></p>
</div>
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<p class="MsoNormal"><span style="font-size:7.5pt">Africa Open Data and Internet Research Foundation</span><u></u><u></u></p>
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<p class="MsoNormal"><span style="font-size:7.5pt">P.O. Box CT 2439, Cantonments, Accra |
<a href="http://www.aodirf.org" target="_blank">www.aodirf.org</a> / <a href="http://www.afrigeocon.org" target="_blank">
www.afrigeocon.org</a> </span><u></u><u></u></p>
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<p class="MsoNormal"><span style="font-size:7.5pt">Tel: +233 20 812 8851</span><u></u><u></u></p>
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<p class="MsoNormal"><span style="font-size:7.5pt">Skype: wisdom_dk | Facebook: kwasi wisdom | Twitter: @wisdom_dk </span><u></u><u></u></p>
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<p class="MsoNormal">__________________________________________________<u></u><u></u></p>
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<p class="MsoNormal"><span style="font-size:7.5pt">Specialization:</span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">E-government Network Infrastructure and E-application, Internet Governance, Open Data policies platforms & Community Development, Cyber Security, Domain Name Systems, Software Engineering, Event Planning
& Management, </span><u></u><u></u></p>
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<p class="MsoNormal">On Wed, Jan 8, 2020 at 10:28 AM Wisdom Donkor <<a href="mailto:wisdom.dk@gmail.com" target="_blank">wisdom.dk@gmail.com</a>> wrote:<u></u><u></u></p>
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<p class="MsoNormal">In this <a href="https://www.cnbc.com/2020/01/07/reuters-america-internet-nonprofit-leaders-fight-deal-to-sell-control-of-org-domain.html?__source=sharebar%7Ctwitter&par=sharebar" title="https://www.cnbc.com/2020/01/07/reuters-america-internet-nonprofit-leaders-fight-deal-to-sell-control-of-org-domain.html?__source=sharebar|twitter&par=sharebar" target="_blank">7
January 2020 article</a> we learn that, "<i>prominent internet executives told Reuters they have created a nonprofit cooperative they are offering as an alternative owner of .org.</i>"<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">This would appear to me to pose an existential threat to ISOC, as this nonprofit cooperative - whose membership appears to me to have more political muscle than ISOC has - is not proposing to buy PIR from ISOC, but to instead have the .ORG
Registry Agreement assigned to it by ICANN.<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<div>
<p class="MsoNormal">The full article is here, and I have extracted some relevant quotes below: <a href="https://www.cnbc.com/2020/01/07/reuters-america-internet-nonprofit-leaders-fight-deal-to-sell-control-of-org-domain.html?__source=sharebar%7Ctwitter&par=sharebar" target="_blank">https://www.cnbc.com/2020/01/07/reuters-america-internet-nonprofit-leaders-fight-deal-to-sell-control-of-org-domain.html?__source=sharebar|twitter&par=sharebar</a><u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><i>“What offended me about the Ethos Capital deal and the way it unfolded is that it seems to have completely betrayed this concept of stewardship,” said Andrew McLaughlin, who oversaw the transfer of internet governance from the U.S. Commerce
Department to ICANN, completed in 2016.</i><u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><i>Maher and others said the idea of the new cooperative is not to offer a competing financial bid for .org, which brings in roughly $100 million in revenue from domain sales. Instead, they hope that the unusual new entity, formally a California
Consumer Cooperative Corporation, can manage the domain for security and stability and make sure it does not become a tool for censorship.</i><u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><i>... The initial seven directors of the cooperative include former founding ICANN President Michael Roberts, MacArthur Foundation philanthropist Jeff Ubois and Bill Woodcock, whose Packet Clearing House now runs the technical aspects
of the .org system under contract.</i><u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><i>The new group has briefed members of the U.S. Congress and hopes to prompt the Internet Society to reconsider the sale. But its best shot at stopping the pending sale lies with ICANN, which can veto any change in ownership out of concern
for the security, reliability or stability of the .org domain.</i><u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Best wishes,<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><b>WISDOM DONKOR</b><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">President & CEO</span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">Africa Open Data and Internet Research Foundation</span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">P.O. Box CT 2439, Cantonments, Accra |
<a href="http://www.aodirf.org" target="_blank">www.aodirf.org</a> / <a href="http://www.afrigeocon.org" target="_blank">
www.afrigeocon.org</a> </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">Tel: +233 20 812 8851</span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">Skype: wisdom_dk | Facebook: kwasi wisdom | Twitter: @wisdom_dk </span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal">__________________________________________________<u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">Specialization:</span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-size:7.5pt">E-government Network Infrastructure and E-application, Internet Governance, Open Data policies platforms & Community Development, Cyber Security, Domain Name Systems, Software Engineering, Event Planning
& Management, </span><u></u><u></u></p>
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</blockquote>
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<p class="MsoNormal">_______________________________________________<br>
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</blockquote>
</div>
</blockquote>
</div>
<p class="MsoNormal">_______________________________________________<br>
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By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" target="_blank">https://www.icann.org/privacy/policy</a>)
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delivery or disabling delivery altogether (e.g., for a vacation), and so on.<u></u><u></u></p>
</blockquote>
</div>
</div>
<p class="MsoNormal">-- <u></u><u></u></p>
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<p class="MsoNormal"><span style="font-family:"Trebuchet MS",sans-serif">Greg Shatan</span><u></u><u></u></p>
<div>
<p class="MsoNormal"><a href="mailto:greg@isoc-ny.org" target="_blank"><span style="font-family:"Trebuchet MS",sans-serif">greg@isoc-ny.org</span></a><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Trebuchet MS",sans-serif">President, ISOC-NY</span><u></u><u></u></p>
</div>
<div>
<p class="MsoNormal"><i><span style="font-family:"Trebuchet MS",sans-serif">"The Internet is for everyone"</span></i><u></u><u></u></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
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By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (<a href="https://www.icann.org/privacy/policy" rel="noreferrer" target="_blank">https://www.icann.org/privacy/policy</a>) and the website Terms of Service (<a href="https://www.icann.org/privacy/tos" rel="noreferrer" target="_blank">https://www.icann.org/privacy/tos</a>). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on.</blockquote></div>