"InternetNZ... is selling Domainz. Domainz was the .nz registry and sole registrar until October 2002 and since the introduction of a new shared registry system has become a registrar for .nz domain names," InternetNZ said in a statement. "It is a conflict of interest to own a registrar, as well as owning the new registry and also act as market regulator".
Domainz is currently the "stabilising registrar" in New Zealand, a role that was established to allow the transition to the new administrative structure.
Executive director of Domainz owner InternetNZ, Peter Macauley, says there are already some buyers interested. The sale has been anticipated for some time.
"Even though we've just announced the sale, most people in the industry knew domainz would be for sale once we opened up the registry," he told ZDNet Australia.
InternetNZ can not be seen to act in a monopolistic or anti-competitive manner, he said, so it has engaged Deloitte Corporate Finances to handle the sale.
"We will be very careful about the sales process to make sure we're very open with it. That's one of the reasons for using an organisation like Deloitte," Macauley said.
However the final buyer will be determined by InternetNZ, and it is tipping major staff cuts following the sale.
"We make the decision, we own all the shares," Macauley said. "The reality is that it's most likely going to end up significantly smaller than it is now, in terms of staff and resources... once the responsibilities associated with running the stabilising registrar go away".
However an overseas purchase, perhaps by an Australian company that wants to purchase the business in order to establish a presence in New Zealand may see the seventeen staff sidestep the axe.
Domainz chief executive Derek Locke agrees.
"If the company is sold as a going concern the existing jobs should be very secure. A lot of it depends on the new owner," he said.
