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06-24-2011, 02:56 PM #1Web Hosting Master
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Godaddy to sell for 2billion? [merged]
http://www.thewhir.com/web-hosting-n..._for_2_Billion
Anyone see this today?
(WEB HOST INDUSTRY REVIEW) -- Web hosting provider and domain registrar Go Daddy (www.godaddy.com) is close to being acquired by private equity firms KKR & Co (www.kkr.com) and Silver Lake Partners (www.silverlake.com) for between $2 billion and $2.5 billion, according to several reports on Friday.
At this point, the deal has not been confirmed by either party. Reports on the Wall Street Journal and Reuters say a source close to the matter has said the deal could close as early as next week.
Go Daddy initially shopped around for buyers in September 2010, but Bloomberg says the company was looking for a higher evaluation. In September the number sat around $1 billion.
Bloomberg says that the company is an attractive buy because its primary customer base is small businesses, a market that has seen tremendous growth in the past few years.
Go Daddy is arguably the most well-known Web hosting company outside of the industry, as its wide-reaching marketing campaigns anchored by flashy Superbowl commercials and spokeswomen including racecar driver Danica Patrick and personal trainer Jillian Michaels of Biggest Loser fame.
Recently, reports surfaced that say Go Daddy is set to launch its cloud computing service in July. This move could increase its customer base even more as consumers look for ways to implement cloud infrastructures for their small businesses.
If this deal went through, it would be the largest acquisition of a Web hosting provider.█ Jeremy Kinsey (jer@mia.net) - 262-248-6759
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06-24-2011, 03:02 PM #2Web Hosting Industry Expert
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I can't say I'm surprised that it would go for $2B myself.
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06-24-2011, 03:04 PM #3Web Hosting Master
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Interesting!
I wonder if they will keep Bob Parsons and gang? Or will the new buyers bring in their own management team?
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06-24-2011, 03:06 PM #4Web Hosting Industry Expert
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06-24-2011, 03:32 PM #5Web Hosting Master
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I found it kinda interesting and possibly good for a volatile and competitive market that may benefit from the gross over valuation.. or not
Perhaps other investors will start taking a more serious look at this market again. Commodity or not.
I think the most compelling and sellable aspect of GD is the brand they have built. I'd find it pretty hard to believe there are 2 to 2.5 billion worth of assets in what amounts to a pretty low end customer base.
But, there's more to be sold to that base. So I guess we'll see.█ Jeremy Kinsey (jer@mia.net) - 262-248-6759
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06-24-2011, 03:35 PM #6Web Hosting Master
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06-24-2011, 03:40 PM #7WHT Addict
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Quite some price for a hosting company.
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06-24-2011, 03:43 PM #8Web Hosting Master
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06-24-2011, 03:48 PM #9Web Hosting Master
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Quite a sale. The intellectual property they hold is pretty substantial when considering the pricing. They have so much share of the entire domain market between their companies, resellers, affiliates, etc. Seems to be a pretty unsurprising price point.
Would be but he won't walk away with anywhere near that number.≈ PeakVPN.Com | Complete Privacy VPN | Cloud Hosting | Guaranteed Security | 1Gbps-10Gbps Unmetered
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06-24-2011, 03:52 PM #10Web Hosting Master
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06-24-2011, 03:57 PM #11Web Hosting Industry Expert
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06-24-2011, 03:58 PM #12Web Hosting Master
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06-24-2011, 03:59 PM #13Web Hosting Evangelist
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Being that the buyer appears to be the same group that owns Endurance International, it'll be interesting to see how it plays out.
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06-24-2011, 03:59 PM #14Web Hosting Master
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They are a major buyout firms
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06-24-2011, 04:10 PM #15Web Hosting Master
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06-24-2011, 07:55 PM #16Disabled
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at last. no surprise. they have been inflating the company since their founding. someone had had mentioned they never turned a profit ever. all was selling cheap hosting/domains to inflate the value of the company. no wonder it was the pre .com bubble business model. start it, inflate it, sell it.
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06-24-2011, 07:56 PM #17Web Hosting Master
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Doug
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06-24-2011, 07:59 PM #18Disabled
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06-24-2011, 08:23 PM #19Web Hosting Evangelist
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Hm which made me to wonder: anybody actually made a profit here? If the elephant could not, how can the ants be?
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06-24-2011, 08:28 PM #20Web Hosting Master
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You mean like how Pandora Online Music sold above valuation when it went IPO a few weeks back, even though it never made profit for the past 10 years?
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06-24-2011, 08:30 PM #21Disabled
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that elephant's (godaddy) business model was never built on profit apparently.
along with a lot of other companies during late stages of .com boom, the business plan was apparently to start something, inflate its value, and sell it.
that's why they were selling dirt cheap hosting probably, and never making a profit.
they drew hosting prices to rock bottom for everyone.
precisely.
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06-25-2011, 12:06 AM #22Moving the Web Forward
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Personally, I think this might mark the beginning of the end for Godaddy. I read an interesting article awhile ago about how the actual gross earning for godaddy were great, the profits were not (from what I understood it looked like godaddy was actually loosing money)? Im guessing more than ever the new owners will make turning a profit their #1 priority, which usually does go to well for a companies customers.
Just my two cents though, either way, Im curious to see how this all plays outLooking for an awesome VPS Offer? CLICK HERE
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06-25-2011, 12:06 AM #23
GoDaddy for sale?
Just read this article: http://www.thewhir.com/web-hosting-n...osting+News%29
Apparently they may sell for as much as $2,500,000,000.
"If this deal went through, it would be the largest acquisition of a Web hosting provider."
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06-25-2011, 12:15 AM #24Temporarily Suspended
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I don't think it will get sold, or its just a rumor.
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06-25-2011, 12:21 AM #25Web Hosting Evangelist
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The sale price seems fair considering their estimated annual revenue for the company was US $750 - US $800 million last year. Also, if my memory serves me right in 2010 there were talks that GoDaddy was to sell for 1 billion. It looks like the stakes have now doubled .
I know bob parsons started his own chopper store in Arizona which is also booming. Perhaps it's time for a new challenge? After being in the industry for so long he may want to take on new challenges and make it his mandate to become number one in the custom chopper business in terms of revenue.
No one really knows but I am certain that 2 - 2.5 billion would seal the deal for many people.█ █ LevelHosting Inc. - Unlimited Web Hosting at your level
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