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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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