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Thread: HostGator / EIG Transaction
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06-26-2012, 05:29 PM #1How Can I Help You Today?
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HostGator / EIG Transaction
HostGator - One of the world's biggest web host is being acquired by Endurance International Group (EIG). The deal will be completed in the next two weeks.
Are your sites hosted with HG?
If you are like me, you would be happy with HG's excellent services, but things can happen when ownership changes. Should you take precautionary measure, for safety?
What are your thoughts?
http://greatresponder.com/2012/06/26...r-web-hosting/
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06-26-2012, 05:35 PM #2Junior Guru
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Wow! I never thought HostGator would be acquired by anyone. I'm actually pretty shocked about this one.
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06-26-2012, 05:49 PM #3Temporarily Suspended
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What precautionary measure do you think should be taken?
I mean, people should already be making backups etc...
If things go down, a simple transfer out would do.
I hope HostGator is another EIG success story though .1
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06-26-2012, 05:51 PM #4Web Hosting Master
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It's still unconfirmed. I frown on any sites that are saying HostGator has been acquired.
What success stories have they had? I can't think of one. Sure a ton of EIG hosts are hugely successful but I can't recall any hosts from them that hadn't had some type of support or performance degradation or got rid of a large amount of staff.Last edited by techjr; 06-26-2012 at 05:57 PM.
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06-26-2012, 05:56 PM #5Temporarily Suspended
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I would have thought BlueHost was a success story for EIG.
I don't really see any increase of negative reviews from them in comparision to before and after acquision, they have nearly doubled their number of employees etc...
I'd assume they have couple other brands that are going good also.0
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06-30-2012, 12:57 AM #6Founder - Jaguarpc
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06-26-2012, 05:58 PM #7Aspiring Evangelist
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BlueHost seems to be keeping their momentum. I think EIG has found a new direction with BlueHost and probably hoping to keep that streak going with HostGator.
I assume EIG has learned a lot about BlueHost and have plenty to learn with HG as well. I'm sure these two hosting brands have plenty to benefit from each other. As long as EIG can move forward without making any drastic changes, then it should be good for both brands.0
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06-26-2012, 06:04 PM #8Web Hosting Master
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As far as I can tell most of these claims that HG is being sold revolve around an internal email that was posted on pastebin. While it very well may be true, until we see an actual press release for either EIG or HG, its all speculation.
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06-26-2012, 06:06 PM #9Aspiring Evangelist
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06-26-2012, 06:10 PM #10Web Hosting Master
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06-27-2012, 12:43 PM #11How Can I Help You Today?
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06-27-2012, 12:44 PM #12Web Hosting Master
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06-26-2012, 06:09 PM #13Retired Moderator
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Ongoing discussion, for those that missed this thread --> http://www.webhostingtalk.com/showthread.php?t=1165849
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06-27-2012, 02:28 PM #14Junior Guru Wannabe
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Could EIG improve HostGator?
--There is a lot of talk about EIG and the rumors about the HG takeover. I thought I'd make a thread for people to discuss how they believe the takeover would affect HostGator--
I used to hate EIG, but as I've been thinking more I wonder if EIG might actually improve HostGator. I assume EIG was financially successful with its first bunch of acquisitions, but most people would agree EIG destroyed the quality of some of the services. More recently with BlueHost EIG gained a little bit of respect, although few people would deem BlueHost as a great service.
At first when I heard about EIG acquiring HostGator, I was worried HG would fall apart. I'm still a little worried about that, but I've started to wonder if there's actually potential for improvement with EIG.
Unlike some one EIG's other acquisitions, I think HostGator has a more recognized and respected brand name. I'm wondering if EIG may have a strong financial incentive to preserve that reputation.
I feel like there should be some advantage via economies of scale with EIG. I also think HostGator's billing system has always been a little silly, and it looks like EIG would probably implement its own system.
I don't know what will happen; only time will tell. EIG's track record isn't very good, but it seems like there's a good chance they'll redeem themselves now.
Do you guys think there's a reasonable chance of EIG improving HG or will it have a bad result like many of the previous acquisitions?0
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06-27-2012, 03:03 PM #15Web Hosting Master
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We can all guess, but unless any of us have insider information or a time machine then guessing is all we can do.
Could they improve it? Yes
Will they improve it? Maybe, maybe not.
Do I have a time machine? I wish.0
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06-27-2012, 03:10 PM #16Web Hosting Master
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To be honest, EIG puts a lot of energy into marketing, some of that goes to artificially make them look better then they are. They have been known for opening up fake review sites and posting fake reviews in order to attract more customers.
In reality, they cause more harm then good. When was the last time you saw a legitimate customer refer a user to FatCow unless they wanted to sabotage the site?0
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06-28-2012, 03:28 PM #17Disabled
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06-28-2012, 03:31 PM #18Web Hosting Master
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http://top5hosts.ipage.com/ is one
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06-28-2012, 05:34 PM #19Web Hosting Master
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That site clearly says the following:
Top5Hosts.ipage.com is presented by iPage to provide information about hosting solutions offered by iPage and other hosting brands our company operates. We wholly own and operate all sites listed on top5hosts.ipage.com.
In compliance with FEDERAL TRADE COMMISSION (FTC) 16 CFR Part 255: Guides Concerning the Use of Endorsements and Testimonials in Advertising, we want to be sure our visitors understand that this site is a promotional vehicle, and the opinions expressed are those of our company.
We operate this site because we believe that our brands offer an outstanding value, and we want to give customers an opportunity to compare our brands to each other.0
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06-27-2012, 03:16 PM #20Managed Services Specialist
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My honest opinion on this:
They might grow the company much larger, they will increase sales. But quality will go down drastically. More effort will be put into marketing and getting new signups than customer satisfaction.0
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06-27-2012, 03:52 PM #21Retired Moderator
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EIG was making a mess when turning companies from their proprietary control panels, to their own control panel (vDeck), fired the old employees etc. Things didn't go as bad when they took over Bluehost and Justhost. In fact, I was a Justhost customer around the time they bought it, and server performance actually improved from what I noticed.
It looks to me like the're going after the cPanel market now, and appear to be running this arm of their business using a different approach. Will it last? That's anybody's guess. My bet is for relatively few changes in the short to mid term. In the long run, even Brent would surely have made changes, if only to adapt or attempt to improve things.0
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06-27-2012, 05:48 PM #22Web Hosting Master
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EIG owns iPage, which is an extremely slow and unreliable service.
No.
If EIG takes over HG, I'll still stick around. However, if they began to make changes and what-not, I'll be packing up my bags and leaving. It will be hard to find an alternative, though (Shared hosting that allows 1TB of bandwidth/month).0
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06-27-2012, 06:21 PM #23Managed VPS Experts
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Was there an official article of this take over? I mean I have been reading about it, but not on any reputable websites.
Only time will tell how they will handle HG.
- Daniel0
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06-28-2012, 12:43 AM #24Junior Guru Wannabe
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Here's Brent's email blast to HG customers as copied from http://hostjury.com/blog/view/453/se...r-to-endurance.
Hello Fellow Gators,
There have been rumors flying around the web and the office about HostGator being sold for many years now. I'd like to address these rumors and put many of your fears to rest. I still own 100% of HostGator and haven't collected a single penny towards any buyouts at this time.
The latest rumor is the first that actually has some truth behind it. I have indeed agreed to sell HostGator to Endurance International Group, which is why you're hearing stories about Endurance International Group raising financing to purchase us. We are currently under contract and if everything goes according to plan, Endurance International Group will be purchasing HostGator in the next 3-4 weeks.
This is the first time in HostGator's history that we have ever reached an agreement on the terms needed to complete a deal.
In the last few months, I've spent countless hours getting to know Endurance International Group CEO Hari Ravichandran, and I can honestly say that he is one of the most trustworthy and knowledgeable people that I've ever met. In other deals we've looked at, the potential buyers have only seen HostGator as a slot machine and that's not true of Hari. He clearly understands that HostGator is the 800 pound gorilla that it is today thanks to all of you who provide the legendary support that HostGator is known for.
It's only natural for all of you to be apprehensive towards change and the fear of possibly losing your job. I can write whatever I want in order to cover for Endurance International Group, but I would rather let the facts speak for themselves:
When I first heard about Endurance International Group purchasing Bluehost in November 2010, I was extremely ecstatic. The first thoughts that came to mind were that Endurance International Group was going to destroy the company, resulting in one of our biggest competitors going the way of the dodo. However, rather than plunder and pillage, they've hired and flourished. Bluehost was at 280 employees when the sale closed and they have 450 today. Their management team has stayed the same and the culture has stayed the same. Now, the Bluehost culture, employees, and philosophy have taken hold to become the new status quo of EIG.
I'm confident the same will happen once again with the best of HostGator culture, ideas, people, and leadership coming together at EIG to create a more powerful hosting company than the world has ever seen. In fact, I've heard that Endurance International Group with HostGator will be even bigger than GoDaddy.
Once this deal is complete, I will continue to own all of the HostGator occupied buildings through Oxley Leasing. Endurance International Group and I will soon have a leasing deal in place that will not only include all of the current occupied space leased, but will also expand Austin by 30,000 square feet as well as Houston by another 10,000-20,000 square feet. Hari has also told me that one of his first acts of business will be to do a major renovation of the Houston office. If Endurance International Group planned on downsizing, they wouldn't be signing such huge expansions in both Houston and Austin.
HostGator will be EIG's largest acquisition to date and with that it's going to create countless opportunities for each and every person. Not only at HostGator, but also at other Endurance International Group brands. I can't stress enough how instrumental it will be for Endurance International Group to replicate HostGator's strengths across all of their brands, and to do that, they will need HostGator leaders and know how.
There are many of you who are going to call me crazy for deciding to sell during a time in which HostGator has experienced unprecedented growth and success. I'll do my best below to share a few of the many reasons behind my decision:
- I want to travel the world before my wife and I have kids.
- I've been doing HostGator since I was 18, and I'm looking for a new challenge.
- I'm extremely worried about the financial path our country is headed down.
- Taxes will be going up significantly in 2013, making it more difficult for business owners.
- I've failed more times than I can count to launch software that would allow us to compete as a registrar.
- We have tried and failed to develop a billing system that has automated and can integrate with our key systems such as chat, phone, affiliates, and tickets. I think we are finally on the right track, but unfortunately I no longer have the patience to wait for it to all come together. Thankfully Endurance International Group has tackled a lot of these challenges already.
- I have practically 100% of my chips in HostGator and if something should ever happen to the company, I'd more than likely be bankrupt ina matter of a few months.
I could stick with HostGator for a few more years and turn it into a multi-billion dollar business, but I think now is the right time for me to move on and to let the company continue to grow and succeed under Endurance International Group.
If any of you have any questions, feel free to email me and I'll do my best to get them answered. The key thing to remember is that this deal isn't complete yet, and if and when it completes, Adam Farrar and the rest of management won't be going anywhere.
Sincerely,
Brent Oxley0
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06-28-2012, 09:36 AM #25Web Hosting Master
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