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GoDaddy will pay $1.79 billion for HEG in major Euro expansion

Kevin Murphy, December 7, 2016, Domain Registrars

GoDaddy is to substantially increase the size of its European operation with the $1.79 billion acquisition of Host Europe Group.

The market-leading registrar confirmed yesterday earlier reports that it was on track to buy HEG, which counts several big-name British and German registrars among its brands.

The deal is worth €1.69 billion ($1.79 billion), which breaks down to €605 million to HEG shareholders and €1.08 billion in debt. It’s expected to close in the second quarter next year.

HEG’s domain brands include 123Reg and DomainMonster in the UK and DomainFactory in Germany.

The company says it has 1.7 million customers and manages over seven million domains.

But the acquisition is more concerned with HEG’s higher-margin small business hosting business, where the company has nine data centers in Europe and the US.

GoDaddy said in a press release:

Combining GoDaddy’s global technology platform with HEG’s footprint in Europe will enable the rapid deployment of a broader range of products to customers and allow for better scale of product development and go-to-market investments across both companies.

One part of the HEG business, the $92 million-a-year PlusServer, is likely to be sold off, however.

GoDaddy said that unit “serves larger, more mature companies that require a dedicated field sales force and account management”, which is not GoDaddy’s core strength.

The deal means that GoDaddy will become the owner of the annual NamesCon conference, which HEG picked up in August for an undisclosed amount.

The acquisition is unlikely to have closed before this coming January’s NamesCon, so there’s unlikely to be many obvious changes to the 2017 event.

GoDaddy said the acquisition is being financed by debt.

HEG’s current owner is private equity firm Cinven, which paid $545 million in 2013.

Oracle buys Dyn just weeks after huge attack

Kevin Murphy, November 21, 2016, Domain Services

Oracle has signed a deal to buy DNS services provider Dyn for an undisclosed amount probably in the nine-figure range.

The software giant said it plans to integrate Dyn’s services into its existing cloud computing platform. For the moment, existing Dyn customers are unaffected.

Dyn provides distributed DNS resolution services mainly to the enterprise market, where it has about 3,500 customers.

But it also provides redundant DNS to some TLD registries, notably Uniregistry.

Knowing how ruthlessly opportunistic Oracle can be when it comes to M&A, I have to wonder how much impact the recent denial of service attack against Dyn had on the timing of the deal being signed.

Dyn customers including Twitter and Netflix found themselves inaccessible for millions of North American internet users a couple of weeks ago.

Customers that may have been reconsidering their DNS options following the downtime may feel more reassured now that Dyn is about to become part of a much larger company.

While the acquisition price was not disclosed, it’s certainly going to be in the hundreds of millions.

Just six months ago, Dyn received $50 million in venture capital, following on from a $38 million round in 2012.

Customers revolt as GoDaddy buys WordPress tools outfit

Kevin Murphy, September 7, 2016, Domain Registrars

GoDaddy has acquired ManageWP, a provider of software for managing large numbers of WordPress sites, leading to hundreds of complaints from customers.

The two companies announced yesterday that the deal will see GoDaddy integrate ManageWP into its existing suite of WordPress services.

ManageWP said pricing will be unaffected by the move, and that its service will continue to be available to customers using other hosting providers.

Despite these assurances, a few hundred ManageWP customers have over the last 24 hours expressed their dismay in comments on the company’s site.

“This is like my very best friend announcing they’re marrying the arsehole in the office,” wrote one commenter.

ManageWP customers are generally web developers who manage WordPress sites for multiple clients.

The service gives them the ability, for free, to manage these sites from a single console, rather than having to log in to each one individually.

For an extra couple of bucks per site per month, features such as daily backups and white-label client reports are available.

ManageWP said its product development roadmap will remain unchanged, and that GoDaddy may offer some currently premium features to its hosting customers for free.

About 8% of ManageWP sites run on GoDaddy, the company said in a blog post.

Despite the positive spin, a great many customers appear to be deeply unhappy that the six-year-old company is joining the Arizona behemoth.

At time of writing, there are already over 300 comments on the ManageWP post announcing the deal, almost all negative.

The bulk of the comments center on GoDaddy’s allegedly poor customer support and its reputation for constantly trying to up-sell products and services.

Here’s a small sample of comments:

I cancelled my account immediately upon reading this news.

I have never dealt with a worse company in my professional life than GoDaddy, and will never do so again. One of my requirements for taking on a new client is moving them off GoDaddy completely.

My main concern from a business perspective is that you are giving away premium features free to GoDaddy hosting customers. That is a direct conflict with the people that offer ManageWP as a service to their clients. The services we provide now seem like they are worth less to our clients who host at GoDaddy.

Bummed about this. The minute I see an up-sell notification slammed in my face trying to get me to join the GoDaddy hosting plan, I’m outta here.

Some of the comments appear to be rooted in experiences during the Bob Parsons era at GoDaddy, which came to an end over five years ago.

Commenters cited “sexist” advertising (largely a thing of the past under current CEO Blake Irving), support for the controversial SOPA legislation (spearheaded by a long-gone general counsel) and that time Parsons shot an elephant.

Many commenters said they will stick around post-acquisition, such is the goodwill ManageWP has earned.

Several ManageWP employees engaged directly with their customers comments. In one response, head of growth Nemanja Aleksic wrote:

the feedback here is something that GoDaddy will definitely need to consider. I’ve been asked by several people why I don’t lock the comments or moderate heavily. This is why. Every single bad and good comment is a ManageWP user whose livelihood could be affected by the acquisition. And every single one of the deserves to be heard.

Personally, as somebody who manages multiple WordPress sites on GoDaddy, but has never used ManageWP, I’m rather looking forward to seeing what the company comes up with.

First dot-brand gTLD to go generic after TLS deal

Kevin Murphy, September 5, 2016, Domain Registries

The would-be dot-brand gTLD .observer will actually open as an unrestricted generic after the contract was bought out by Top Level Spectrum.

TLS, which has a small portfolio of gTLDs already, bought out the ICANN contract from UK newspaper publisher Guardian News and Media a couple of months ago, it emerged today.

The Observer is the title of the Guardian’s sister paper, published on Sundays.

But TLS CEO Jay Westerdal said it will be sold as a generic with pricing under $10 per name, as a thematic stable-mate for its gripe-oriented gTLD .feedback.

The price of the TLD has not been revealed, but Westerdal characterized it as a sub-$1 million deal.

It’s the first instance of a dot-brand, albeit one that that not yet gone live, being taken over by a portfolio gTLD player.

Westerdal said he’s looking for more, similar acquisition opportunities.

The gTLD is currently in pre-delegation testing, with no published go-live date.

The Guardian had signed a Registry Agreement containing Specification 9. That allows registries to disregard the Code of Conduct — which obliges them to treat registrars equally.

It seems likely this will have to be removed from the RA before .observer can go to the masses as a proper generic.

NamesCon confirms three more shows after being acquired

Kevin Murphy, August 19, 2016, Domain Services

NamesCon says it has booked the venue for three more years of domain name conferences, following its acquisition this week.

The conference organizers said today that it has been acquired by 13-year-old German events outfit WorldHostingDays, which usually focuses on the hosting market, for an undisclosed sum.

NamesCon said in a press release that all existing commitments — such as tickets and sponsorship deals — will be honored, and that the same folk will still run the 2017 conference.

It said that it has booked the Tropicana hotel in Las Vegas, venue for the first three events, for the next three years.

The next three events will be held January 22 – 25, 2017, January 28 – 31, 2018 and January 27 – 30, 2019, the company said.

NamesCon focuses on the business of domain names, providing sessions on the buy and sell sides of the business.