I just shook up with the news of web hosting provider Go Daddy which recently was sold to KKR. As far as I was aware of the fact that, Go Daddy is one of the largest domain providers ruling the World Wide Web and It was found by Bob Parson in 1977. Wonders will never cease! When in 2009 to 2010, Go Daddy was able to manage astonishing sales growth of 25 present to $947 million.
About the Investors:
These days KKR and Silver Lake is highlighted in the web hosting news. When I heard about KKR I wondered, what type of company is it, and then I found out that Kohlberg Kravis Roberts is a leading asset manager and it’s a surprise for me to know about it. It is one of the big fish of leveraged buyout industry which has come to overtake the giant Go Daddy. KKR has a good history of buyouts like they invested in Go Daddy. George Roberts and Henry Kravis established KKR in 1976, they are known as the pioneers of leveraged buyout industry. Their network is very vast and shows teamwork across Australia, Asia, Europe and United States.
Acquisition or Buyout: A Myth
A myth just leaked out regarding acquisition that it is being considered as a joint venture and there must be numerous reasons for not a full buyout. Go Daddy finds the right deal for its customers and employees with the right partners. Now they have become the two sides of the same coin due to the expertise in technology and a strong history in web based business.
KKR & Co. Silver Lake Partners and Technology Crossover Ventures are major acquirers and the eye opening investment of $2.5 billion was made in Go Daddy will grow like a house on fire and attract more acquisitions and mergers in the web hosting industry. It will also help them to expand their Arizona operations.
Talking about the Silver Lake is also one of the biggest financial firms in the buyout industry and don’t be surprised to hear the sound of clinking cocktail glasses in silver lake that it has a $1.9 billion stake in Skype and recently an eye opening deal worth of $8.5 billion with Microsoft to sold Skype.
Mind Boggling Rumour About Go Daddy:
In 2006, there was mind boggling news that Go Daddy started filing papers for Initial Public offer (IPO) then certainly economic crisis forced the company to withdraw its papers. According to rumour in Wall street journal that in September’ 2010 Go Daddy was ready to be sold out for round about $1Billion and most of the companies were shocked to hear this type of rumour. This made me shake as well.
Future of Go Daddy:
For netizens there is an anxiety about change in leadership of Go Daddy after the acquisition that it would affect the customers and the way it does the business. Parson still is the CEO of the company and according to web hosting reviews; things will get much better now with the new leadership. The three investors have past experience of doing business with tech related firms like Zynga, Group on, Home Away, Facebook and many more. There is a famous saying which fits in this condition i.e. if it looks like a duck and quacks like a duck, it’s probably a duck. It means that after acquisition, Go Daddy has the capability climb the corporate ladder.