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  1. #1
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    Exclamation 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/

    Share with us!
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  2. #2
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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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  3. #3
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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 .
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  4. #4
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    It's still unconfirmed. I frown on any sites that are saying HostGator has been acquired.

    Quote Originally Posted by HostPanda View Post
    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 .
    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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  5. #5
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    Quote Originally Posted by techjr View Post
    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.
    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.
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  6. #6
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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.
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  7. #7
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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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  8. #8
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    Quote Originally Posted by FrankLaszlo View Post
    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.
    I wouldn't expect a press release. EIG likes to keep things quiet so it doesn't disturb the peace. Just imagine if the majority of their customer's knew they were being bought out? Chaos.

    I expect a quiet as possible transaction.
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  9. #9
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    Ongoing discussion, for those that missed this thread --> http://www.webhostingtalk.com/showthread.php?t=1165849
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  10. #10
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    Quote Originally Posted by Tin View Post
    I wouldn't expect a press release. EIG likes to keep things quiet so it doesn't disturb the peace. Just imagine if the majority of their customer's knew they were being bought out? Chaos.

    I expect a quiet as possible transaction.
    Something that large would be impossible to keep under wraps. All we have right now is a pastebin of an email and a few scattered articles on random sites. Nothing concrete.
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  11. #11
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    Lightbulb

    Quote Originally Posted by FrankLaszlo View Post
    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.
    It is actually happening, Brent is getting paid in the next couple of weeks

    Time to relax and enjoy the sun for him before going to the next adventure.
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  12. #12
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    Quote Originally Posted by jrianto View Post
    It is actually happening, Brent is getting paid in the next couple of weeks

    Time to relax and enjoy the sun for him before going to the next adventure.
    source? Or just more speculation?
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  13. #13
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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?
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  14. #14
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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.
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  15. #15
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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?
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  16. #16
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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.
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  17. #17
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    Hi Frank, source would be Brent Oxley himself
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  18. #18
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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.
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  19. #19
    Another topic about this:
    http://www.webhostingtalk.com/showthread.php?t=1167913

    I think that this purchase will influence much on the market as EIG becoming more and more monopolistic structure.
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  20. #20
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    My mom, who's business has phone service through VOIPo (a HostGator-owned company), just got a notice that they'll be switching to monthly billing in the next few weeks and offered her an opportunity to buy in for another two years (which I advised her against; she's already coasting on a two-year subscription).

    Coincidence? I think not.

    She also has hosting through HG, and from what I've heard about EIG, I'm going to be moving her off of them if things start to go sour.
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  21. #21
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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).
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  22. #22
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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.

    - Daniel
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  23. #23
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    I dont think they will make too many whole-sale changes (at least not initially), but I imagine without Brent, you wont see much of an improvement. At best I think you can hope things remain steady, this is a pretty big accusation for EIG so I am definitely curious to see how it all pans out.
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  24. #24
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    Appdeveloper, are you really managing 1TB with HG?

    Was there an official article of this take over? I mean I have been reading about it, but not on any reputable websites.
    It is still a rumor, but it is appearing more and more likely as far as I can tell.
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  25. #25
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    I think they could make hostgator more profitable using already made systems which decrease development costs. Rather than hiring a bunch of developers or programmers to work on billing systems and such, they could simply implement an EIG branded one that all of the other companies use. Already made, no need to pay a bunch of cash for something separate.


    If service does improve for the end user, it's going to take quite a while and most likely a drop in service before that happens. Employees are going to be fired, management will be shifted around, possibly new employee policies and expectations.


    Quote Originally Posted by Chris-Smith View Post
    Appdeveloper, are you really managing 1TB with HG?



    It is still a rumor, but it is appearing more and more likely as far as I can tell.
    There have been a few reports of being using over a TB of bandwidth on this forum. I've seen images of it myself. They weren't database heavy sites but people really are using that much bandwidth.
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  26. #26
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    That EIG is raising $225M to do this deal has already been published in some online publications that cater to the hosting industry. So I expect it's true, but deals of this nature can always go sour at the last minute.

    But it is more of the private equity routine, which is to use someone else's money to buy companies.
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  27. #27
    I think yes. For such big deal, the EIG would be serious about the business and get more clients with HG current popularity. If they fail to do that, it will be a huge loss.
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  28. #28
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    It's still a private equity company, and they don't have stellar records for buying companies and enhancing their reputations.
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  29. #29
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    Quote Originally Posted by Chris-Smith View Post
    Appdeveloper, are you really managing 1TB with HG?
    It would be more than double that if it wasn't for CloudFlare.
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  30. #30
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    I think they could make hostgator more profitable using already made systems which decrease development costs. Rather than hiring a bunch of developers or programmers to work on billing systems and such, they could simply implement an EIG branded one that all of the other companies use. Already made, no need to pay a bunch of cash for something separate.
    Sorry if it was unclear, I think implementing the stuff EIG already has could help, not EIG making new stuff from the ground up for HG
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  31. #31
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    According to Oxley's email on the subject, HG had problems implementing an efficient and well-integrated billing system, and in setting themselves up as a domain registrar. So I suppose EIG could make both happen. They already have the billing systems in place.
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  32. #32
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    Quote Originally Posted by Chris-Smith View Post
    Sorry if it was unclear, I think implementing the stuff EIG already has could help, not EIG making new stuff from the ground up for HG
    Thats what I was saying in case I didn't say it properly.

    Hostgator now, has programmers working on the billing system and other systems within the company. If EIG does purchase hostgator, I would have to say there are going to be some large odds that hostgators programmers may lose their jobs due to the systems in place EIG has. Such as domain registration, working billing and anything else. Making hostgator more profitable.


    Vdeck would probably vastly improve their profits too but I doubt customers would be happy with the transition after using cPanel for years.

    I'm very curious about what changes are going to happen. A lot of the companies EIG owns really seem to be focused on shared hosting. If you need to upgrade past shared hosting, you are unable to stay with the company and are forced to move. While hostgator on the other-hand has just about all of the offerings needed to constantly grow your website with the company.
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  33. #33
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    Quote Originally Posted by LH-Steven View Post
    My mom, who's business has phone service through VOIPo (a HostGator-owned company)
    I can't comment on the rumors regarding HostGator, but I do want to clarify that VOIPo is NOT owned by HostGator.

    To clarify...

    I'm the founder of VOIPo and a former HG executive. Brent (founder of HostGator) made a personal investment in VOIPo in 2006 and we jointly own it. It is not owned by HostGator and his portion is a personal investment on his part only.

    While we have a great relationship with HostGator and have done cross marketing to leverage the HostGator brand especially when we first launched, there is no financial connection between the two companies in any way outside of HostGator being a large VOIPo customer (we provide their service and the service for their business plan toll-free numbers).

    Many people think there's an ownership connection due to the cross promotion, but there's not. If there is any type of transaction involving HostGator, it would have zero impact on VOIPo.
    Last edited by Timothy; 06-27-2012 at 09:20 PM.
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  34. #34
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    No. Next question.
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  35. #35
    Duplicate thread. This is being discussed in the web hosting forums already.
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  36. #36
    Yada, Yada, Yap, Yap, nothing new posted here which wasn't posted in the initial EIG/Hostgator thread.
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  37. #37
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    Quote Originally Posted by TmzHosting View Post
    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.

    - Daniel
    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 Oxley
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  38. #38
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    Nice long email, I'd recommend brent to write a book on his HG success so we can all share his wisdom throughout the years.
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  39. #39
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    Quote Originally Posted by Timothy View Post
    I can't comment on the rumors regarding HostGator, but I do want to clarify that VOIPo is NOT owned by HostGator.

    To clarify...

    I'm the founder of VOIPo and a former HG executive. Brent (founder of HostGator) made a personal investment in VOIPo in 2006 and we jointly own it. It is not owned by HostGator and his portion is a personal investment on his part only.

    While we have a great relationship with HostGator and have done cross marketing to leverage the HostGator brand especially when we first launched, there is no financial connection between the two companies in any way outside of HostGator being a large VOIPo customer (we provide their service and the service for their business plan toll-free numbers).

    Many people think there's an ownership connection due to the cross promotion, but there's not. If there is any type of transaction involving HostGator, it would have zero impact on VOIPo.
    I stand corrected. Thanks for clarifying Timothy! You learn something new everyday....
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  40. #40
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    Quote Originally Posted by Mrs_Esterhouse View Post
    Here's Brent's email blast to HG customers as copied from http://hostjury.com/blog/view/453/se...r-to-endurance.
    I don't believe this was sent to customers. I never got one myself. Supposedly that was an email between employees and even then it's not confirmed. Where did you read it was to HG customers?
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