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GoDaddy in talks to buy massive registrar Host Europe – report

Kevin Murphy, November 25, 2016, Domain Registrars

GoDaddy is reportedly talking to Host Europe Group, one of Europe’s largest registrars, about an acquisition.

Reuters today reported that the deal, should it go ahead, could be worth as much as $1.8 billion.

GoDaddy has been favored over rival bids from United Internet (owner of United-Domains) and buyout firm Centerbridge, Reuters said.

HEG is the parent company for several registrar brands. Notably, it owns 123-reg and DomainMonster, two of the UK’s largest registrars.

123-reg had over 900,000 gTLD domains on its books at the last count. HEG overall says it manages over seven million domains.

The company was acquired by private equity group Cinven for £438 million ($545 million) in 2013.

It has 1.7 million customers and 1,300 employees spread across eight countries. It primarily operates in the UK and Germany.

HEG had 2015 revenue of €269.8 million ($286.3 million) and made a loss of €55.6 million ($59 million).

For GoDaddy, the acquisition is a chance to shift its revenue mix away from domains and more towards the more profitable hosting market, according to Reuters.

GoDaddy spearheads Domain Connect spec

Kevin Murphy, September 27, 2016, Domain Registrars

GoDaddy has published a new specification designed to make it easier for domain owners to quickly set up web sites using third-party site-building tools.

Its new Domain Connect Initiative is tailored for customers who do not know how to configure a DNS record and do not care to learn,according to Charles Beadnall, senior VP of domains.

While signing up for a participating site-building service, Shopify for example, customers currently have to either figure out how to manually reconfigure their DNS or get GoDaddy’s customer support to talk them through it.

GoDaddy currently receives tens of thousands of customer support calls every year related to these scenarios, Beadnall said.

But using Domain Connect, instead they will be able to simply enter their domain name with Shopify and, after authenticating with their registrar (via OAUTH), their domain’s DNS will be automatically configured to point to their new site.

This saves the customer’s time and GoDaddy’s money.

Under the hood, it works using a series of templates, authored by the service providers, which instruct the registrar or DNS provider in how to set up the domain to use the service, Beadnall said.

Due to the high risk of malicious exploitation, it’s not completely frictionless. Service provider templates must be manually pre-approved and white-listed by registrars, Beadnall said.

As the system does not involve domain registration or transfer it’s not really within ICANN’s policy wheelhouse, so the spec has instead been published via the IETF.

It has already been embraced by leading rival registrars eNom, Name.com and United Domains, as well as toolmakers including Microsoft, Shopify and Wix.

The announcement of Domain Connect was made a couple of weeks ago while I was off sick.

More information and documentation can be found on the Domain Connect web site.

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.

GoDaddy gets its dot-brand

GoDaddy has become a new gTLD registry with the delegation yesterday of .godaddy.

It’s a dot-brand, so domain name registrations will not be made available to the general public.

In one of the shortest mission statements found in new gTLD applications, the company describes .godaddy like this:

The mission or purpose of the .GODADDY gTLD is strictly for branding protection and internal use. The gTLD .GODADDY will give visitors to any .GODADDY site the assurance that they are truly dealing with Go Daddy and not an imposter or cybersquatter.

GoDaddy has not yet gone live with its nic.godaddy site.

It’s not the first domain name firm to get its own dot-brand. Notably, Neustar and Verisign own .neustar and .verisign.

It’s not the only registrar with a dot-brand, either. France’s OVH got there first with .ovh.

GoDaddy originally applied for two other gTLDs — .home and .casa — but withdrew their applications almost immediately after a shift of company strategy.

GoDaddy grows domain revs 10% in Q1

GoDaddy reported its first quarter numbers last night, which including an almost 10% increase in revenue from domain names.

The market-leading registrar reported a net loss of $18.3 million, smaller than the $43.4 million a year ago, on total revenue of $433.7 million, up 15.3%.

It broke out its revenue from domain names as $218.9 million, up 9.9% on Q1 2015.

Hosting-related services and business applications grew 14.4% and 47.4% respectively, to $160.4 million and $54.4 million.

The company raised its revenue expectations for the year to a range of $1.83 billion to $1.845 billion.