Greatresponder.com – 2011-07-04 – Go Daddy web hosting and domain registrar giant has sold a major piece to a business group of private equity for around $2.5 billion USD. As reported just week ago, the group is led by KKR & Company, Silver Lake Technology Crossover Ventures and will assume all of Go Daddy Inc.’s debt as well as its assets.
As the world bigest domain registrar company, GoDaddy have over 9.4 million customers and manages over than 48 million domain names in different domain zones. Despite such impressive stats, Go Daddy web hosting and domain registrar has reported consecutive annual losses with very small growth only during the latest fiscal year.
For at least the time being, current CEO and President mr. Robert Parsons will remain in that position, and has stated the company’s plans to expand its offerings by increasing its international presence and moving its hosting solutions into the cloud based infrastructure. Mr. Parsons founded Go Daddy web hosting company in 1997 year and in 2006 failed in his attempt to go public, citing poor market conditions when withdrawing its IPO.
Whether this acquisition is considered an investment or a purchase, mr. Parsons is reported to remain GoDaddy’s biggest single shareholder while the new private equity group of companies becomes the biggest corporative investor.
Silver Lake has a great experience of flipping and growing different Internet companies, with the sale of Skype communicator for around $8.5 billion to Microsoft Corporation, after purchasing it from EBay corporation several years ago for only $2 billion. KKR and Silver Lake are familiar partners with their 2005 group investment of Avago Technologies, while TCV leads a group of firms that has invested a reported $135 million in Facebook. Silver Lake and TCV are co-investors in the leading daily deal site Groupon and the social gaming company Zynga.
In conclusion we just want to note that $2.5 billion USD is a biggest investment for hosting company ever made before.