Go Daddy Sold in $2.25 billion deal

Go Daddy, the world's largest registrar of domains, has been sold to a group of private equity firms. Reuters previously reported a few hours ago that the company was in talks to be sold. The Los Angeles Times, however, now says the company has been bought for $2.25 billion by three private equity firms. The three firms are identified as KKR & Co., Silver Lake Partners and Technology Crossover Ventures (TCV). The firms will assume the company's debt as part of the deal.

"What these guys see is a company with a lot more potential internationally and more potential to make partnerships and acquisitions," Bob Parsons, Go Daddy's chief executive and founder said. The investment group is excited about the growth potential of Go Daddy's web hosting and other services, a source close to the negotiations said. Qatalyst Partners served as the exclusive advisor to Go Daddy in connection with the transaction.

From 2009 to 2010 the company grew 25%, resulting in a sales revenue of almost $950 million. The company projects a sales revenue of over $1 billion this year. Silver Lake, the former owner of Skype Global, sold Skype Global to Microsoft. TCV led a $135 million investment in Facebook, KKR and Silver Lake helped Avago Technologies go public in 2009 after buying it in 2005.

Image Courtesy of: LA Times

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24 Comments

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Globalist buyout. Their history is very interesting and they seem interested in being close to many things in media. Manipulation is a key work here.

Maybe they'll improve some of their services now. Seriously, their hosting is just bad, not to mention the interface.

I know a service that uses GoDaddy (and presumably their VPS services) that goes down often. It was down for a few days not too long ago and those that ran the service had no clue why. Maybe it's your host?

GoDaddy used to be decent for domains back in the day, but now their interface is slow, annoying and confusing. They haven't imrpoved one bit. Also their hosting service is terrible.

There's not a lot of details, but the article kind of insinuates Bob Parsons is going to continue running things. ShareShiz, I'd be willing to bet that Danika Patrick will remain the GoDaddy Girl for awhile. They've both helped make each other famous.

Wodin said,
There's not a lot of details, but the article kind of insinuates Bob Parsons is going to continue running things. ShareShiz, I'd be willing to bet that Danika Patrick will remain the GoDaddy Girl for awhile. They've both helped make each other famous.

she's done a lot more for their name than they have done for her.

reidtheweed01 said,
she's done a lot more for their name than they have done for her.

Except for that whole sponsorship thing where they pay her team to race and exist...

The New Owner better NOT mess with the $29.99 .CO Domain Prices, Otherwise I will have no choice but to take my business elsewhere!

kevpan815 said,
The New Owner better NOT mess with the $29.99 .CO Domain Prices, Otherwise I will have no choice but to take my business elsewhere!

they are making it 19.99...
But OH WELL.. See ya later.

3Cube said,
GoDaddy sucks for web hosting.

Seriously, has anyone every tried to set anything up on their site? What a confusing disorganized mess.

TRC said,

Seriously, has anyone every tried to set anything up on their site? What a confusing disorganized mess.

Ive not had one issue with their domain hosting.

3Cube said,
GoDaddy sucks for web hosting.

I have domains through them but I'm not hosting them there. Cheapest place for domains and good setups with them.

sava700 said,

I have domains through them but I'm not hosting them there. Cheapest place for domains and good setups with them.

I do as well but I only use them for email purposes. Never had issues with them in that regard.

sava700 said,

I have domains through them but I'm not hosting them there. Cheapest place for domains and good setups with them.

I do as well but I only use them for email purposes. Never had issues with them in that regard.

ShareShiz said,
OHHH NOO. What about Danika Patrick

Exactly what I thought lol
Watched that same commercial on Crankygeeks infinite times.

spudtrooper said,
There must be a TON of debt if the YTD revenue is nearly 1 billion but the company only sold for 2.25.

I'd imagine the overhead for a company such as GoDaddy is quite large.

spudtrooper said,
There must be a TON of debt if the YTD revenue is nearly 1 billion but the company only sold for 2.25.

The $1 Billion sales is a projection for the entire year.

spudtrooper said,
There must be a TON of debt if the YTD revenue is nearly 1 billion but the company only sold for 2.25.

Generally, companies' valuation is based off of profit and not revenue. There are probably a million+ ways to determine the value of a company, but profitability is core.

If they did a 5 year profit valuation - it would basically mean that GoDaddy makes around $450 million per year. This feels right for this type of company - the overhead should be nominal as there are systems in place to handle many of the transactions and exceptions at a registrar.

There was a SEC filing that I saw at one time when GoDaddy looked like it was going to go public - it was retracted - The data is up to 2005 so it doesn't give a clear picture of what happened from 2005 forward, but it does show an operating loss in the company. So I have an inkling that the profitability that I stated above is probably not entirely accurate, and they used possibly another valuation point.

No matter what, I still think that Bob's getting a good deal .

Check it out here for the SEC filing:
http://www.secinfo.com/dr6nd.v6m.htm#6zhd