GoDaddy Is On The Selling Block(Whole Company)...A Billion Plus?

[companyone]

Hi,


GoDaddy Is on the Block

GoDaddy .com, the closely held website that registers Internet domain names, has put itself up for sale in an auction that could fetch more than $1 billion, people familiar with the matter said.

Qatalyst Partners, the boutique firm run by veteran technology banker Frank Quattrone, has been hired to shop the Go Daddy Group Inc., which runs the world's largest domain name registrar, these people said. Private-equity firms are expected to bid for the company, which currently has more than 43 million domains under management.

GoDaddy .com and Qatalyst representatives did not immediately respond to requests for comment.

Based in Scottsdale, Ariz., GoDaddy .com is owned by Bob Parsons, who founded the company in 1997 and is its chief executive—a man the company website describes as "not shy to speak his mind." The company is well known for its edgy advertising, including Super Bowl commercials and ads featuring different "Go Daddy Girls," including racing car driver Danica Patrick.

Source With Links And Much more Information

_____

Dan

 

[dmyre]

Interesting. I wonder if they were only offering .99 domains to increase the number of domains registered there.
I dont know why they don't try going public.

 

[bmugford]

I would like to know what this means if true.

It seems like $1B is grossly underpricing the company for a 50% market share.

Brad

 

[south]

I would like to know what this means if true.

It seems like $1B is grossly underpricing the company for a 50% market share.

Brad

Depends on the value of the market, margins, growth prospects, profitability. Maybe Bob just wants to cash out and take a break..

 

[Theo]

Nice. Bob Parsons a few weeks ago denounced rumors that he's selling the company. Seems like these rumors had some basis. I too don't understand why they won't have an IPO instead of cashing out - unless, the buyer is already found and this is just one big publicity stunt.

 

[PRED]

don't blame bob, he's still young, why not walk into sunset with a billion in back pocket lol
very bad news for owners of domains there imho
prices will go up etc
godaddy are good, much better than they ever were
i will think about transferring everything out if they sell to private equity etc

 

[Gerry]

They had announced and cancelled going public and an IPO TWICE that I am aware of. Perhaps even more than that.

The last time is when they were on the start up of TDNAM, or about that same time.

Not only did GD recognize they had the largest body of names registered in one place, they obviously figured out that they also had the largest market of dropping and deleting names. This led them to the exclusive rights to offer up names in their possession to the secondary market.

I am speculating here, but rather than subject themselves to the ups and downs of the stock market, they found themselves in the enviable position of having a pot of gold at the end of the rainbow - thus came about TDNAM.

Regardless of the "stated reasons" to cancel the IPO, I think they found a way to make themselves into a cash machine without any outside help or influence or investors.

Now, they look pretty damn ripe.

 

[JB Lions]

"prices will go up etc"

I don't know. If it's working, roll with it, why mess with the model. It's what got them to where they are now.

 

[Jilo]

Anyone think Google could be that buyer?

 

[katherine]

AFAIK godaddy has consistently been reporting losses year after year. Is that still the case ?

 

[ecomindia]

shall i panic? 40% portfolio resides there............

 

[companyone]

Hi,

Bob has had 100 - 130 million in "free cash flow" right into his own pockets for the last 3- 5+ years or so...

In the economic environment of the last 3 years or so...the IPO market has just been almost non-exsistant..

And does anyone here really think... "Bob" would function well having a board of directors & shareholders, to answer to?

NOT.....


Here is an idea put out their that makes sense:

Jesse Ma, a lawyer at New York-based Gawker Media, the publisher of several influential tech and celebrity websites, suggests on his personal blog that Amazon.com should buy Go Daddy to bolster its Web-services arm, which rents out computing power and storage to startups and other customers.

Amazon has also dabbled in selling keyword advertising through its Clickriver service, which could in theory power Go Daddy’s parked domains, which have been registered but not yet filled with content.

It is, in short, a sexy notion.

Here’s one more connection: Quattrone was the banker who took Amazon public in the mid-’90s.

____

Dan

 

[Tia Wood]

Anyone think Google could be that buyer?

Yes!!

 

[companyone]

Google...maybe,

But they are already up to their *$# in lawsuits over their current "parked" domains.. as well as all the lawsuits against "youtube"....and some of these are HUGE...they might be a little 'gun-shy'...as I am sure that "GD" has a few of their own 'lawsuits pending".

I like the "amazon' theory...

But,

In all likely hood...I would say the natural thing will be: register .com ~ I doubt ENOM could swing a Billion $'s ?

Would be a nice little "diversification move' for an "Apple' or 'Cisco' or MS ( they all have 30 - 40 Billion of CASH just sitting around)

And right now, They can not pull the trigger on almost anything else in their sectors...because our government will not tell them anything about where tax's, tax cuts, regulations, health care etc...are going in any meaningful time frame.

One thing is for sure...MS will be too slow to react AS Always... even though MS is no stranger to the domain game.. as they have sued almost everyone in the world that has ever owned a domain....including a kid named Mike Rowe...for owing the domain: mikerowesoft .com

http://en.wikipedia.org/wiki/Microsoft_vs._MikeRoweSoft

_______



_____

 

[doc24]

Whos the best domain company in your opinions ? I will also move all mine from GoDaddy if this happens.
Moniker ? Fabulous ?

 

[katherine]

GD changing hands is not necessarily a bad thing.

 

[EM @MAJ.com]

Anyone think Google could be that buyer?

Google, Yahoo or Microsoft ideal buyer to extend their business core. Yes, Yahoo still have enough $ to make the purchase.

 

[companyone]

Good point watcher...about "yahoo"

makes much more sense then the "dumb deals" they do with "MS" etc...

I forgot them on my list...they could swing the deal...and makes good sense..IMHO... I just did not think of them...and should have..

Best,
Dan

 

[furca]

They are selling 4-5 years before "custom TLDs" come about. It's smart of them really - getting out while they are on top.

Custom TLDs are the final evolution of the domain cycle. When companies can get their own extensions far less domains will be registered in the extensions of which GoDaddy (and other registrars) have partnered with.

Ex:

admission.ncstate
apply.ncstate
tutors.ncstate
braves.mlb
angels.mlb
atlanta.rotary

etc.

 

[Credit]

They are selling 4-5 years before "custom TLDs" come about. It's smart of them really - getting out while they are on top.

Custom TLDs are the final evolution of the domain cycle. When companies can get their own extensions far less domains will be registered in the extensions of which GoDaddy (and other registrars) have partnered with.

Ex:

admission.ncstate
apply.ncstate
tutors.ncstate
braves.mlb
angels.mlb
atlanta.rotary

etc.

Wrong. That would create more confusion than anything else.