Finteza

Brisio Innovations to Acquire NameSilo

Labeled as registrars in Domain Industry News started by Arca, Mar 9, 2018.

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  1. wwwweb

    wwwweb Top Member VIP

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    You nailed it, they look for what they deem undervalued companies where they see growth, to unlock value. Buy low, sell high is how you do this. If they want to grow via equity, they need to spend a lot more money. When godaddy saw they were flat lining on discount domain registrations, what did they do, restrict coupons, raise prices, look for new sales channels, and built the world's most valuable domain portfolio, which probably cost quarter of a billion dollars to execute.

    I understand during these types of busy new ownership, gives old ownership/management assurances we aren't going to change anything, this is your baby, keep doing what your doing. Right now capital is flowing, as soon as we see interest rates push higher, trade wars develop, stock market wealth start to errode, that is where things get tricky, and capital gets tighter. It's true Namesilo needs money to grow, but usually you see ownership open up a round, not sell the whole company. Once you do that you have no skin in the game, and you lose focus at times.

    Not saying this is how it plays out, like I said I have enjoyed the services this company offers to this point, and I am sure many here have liked the alt choice they have, but as Tony said, we have just seen this go sideways so many times before. I mean Godaddy is a monster, and continue to grow, Namesilo needs money to do that. I would say if they can build a marketplace, with some kind of sales channel, or help owners unlock the value of their domains in the open market is the fastest way to do that. There is no margin in domain registrations.
     
    Last edited: Mar 9, 2018
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  2. namesilo

    namesilo Active Member NameSilo Staff

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    Yeah, we totally understand :)

    The intentions of this acquisition is to raise money to expand the business - nothing more, nothing less. Our belief, and the belief of Brisio, is that the way to grow a successful and expanding business such as NameSilo is to continue doing what it's done, but do so on a larger scale. Investment, such as taking the company public, is one such way to raise money to reinvest in the business.

    We've been asked why there are not more challengers to industry heavyweights and the answer in many cases is lack of resources. We hope to continue expanding upon what we've built and to do so faster and to gain even more market share. A major focus of our business has been and will continue to be on our Marketplace for example. The more eyeballs we get, the more we can increase sales which is good for both our customers and ourselves. We think the industry is ripe for further growth with a trusted brand such as ours, and neither we or Brisio have any interest in messing with that formula... just accelerating it.
     
  3. namesilo

    namesilo Active Member NameSilo Staff

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    Thanks - that's what we're asking... we hope that we've earned people's trust thus far, and we would certainly appreciate the opportunity to continue doing so. It is counter-productive and financially stupid (sorry, couldn't think of a better word!) to take a successful business and change it. We believe it is much better to take what has worked and expand on it - as we have always tried to do.

    We know we will be under increased scrutiny in the coming days, weeks, months and years, and we welcome this as it is a motivating factor to ensure we continue to earn trust.
     
  4. carob

    carob Active Member VIP

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    That really has potential, the competitors all seem to have limitations that they can't or won't deal with.
     
  5. tonyk2000

    tonyk2000 Active Member VIP ★★★★★★★★★★

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    My thoughts exactly. I also hope that all current NameSilo employees WILL still have their jobs @ Name Silo, as it is the most important part of any company. The people. The team.
     
  6. wwwweb

    wwwweb Top Member VIP

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    Here is my thing when you raise money, you offer up shares, or a percentage, you guys sold the entire company?
     
  7. namesilo

    namesilo Active Member NameSilo Staff

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    Thanks - you make many very good points. Guess the best we can say is to watch us closely and see how things turn out. We of course cannot give a 100% guarantee on how everything works out, but we can tell you that the intentions are very good on all sides, and raising money to expand the business can have a lot of positive impacts. Yes, we've seen this go sideways many times as well, and if this happens with us, we expect the ramifications. We have a lot of loyal customers who are active on NamePros and other places, and we know that keeping the community of domain investors happy is a top priority. If we don't... then we know word will spread and we will suffer the consequences. Best I can offer is to keep a close eye as we know everyone will.
     
  8. namesilo

    namesilo Active Member NameSilo Staff

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    Yep - everyone here is still here and will remain as such. Might see some new names replying in support in the coming months, especially in international markets. Other than that, the same people who have been here are remaining. Appreciate the sentiment :)
     
  9. wwwweb

    wwwweb Top Member VIP

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    Actually you are smart to sell the entire company at this point, as valuations have never been higher when it comes to tech, and capital markets. We probably have more downside risk, than upside in the overall markets going forward. Frustrating for new buyers, more so an uptick for the sellers, many times in such sub $10M sales, we see the old owners buy the company back for less, when new owners get stuck in a bad market, or find new opportunities, and are locked out from raising more capital for it.

    We will see how it plays out.
     
  10. namesilo

    namesilo Active Member NameSilo Staff

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    We can't really get into the specifics of the deal structure beyond what has been publicly released, but we can say that our founders are well-incentivized to ensure maintaining smooth operations and to continue growing the business. Not trying to be unnecessarily cryptic and more details of the acquisition will come out as disclosure is required and allowed.
     
  11. namesilo

    namesilo Active Member NameSilo Staff

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    Yeah, we're very excited about the future. I know that sounds like typical hyperbole and a canned response, but it genuinely is the case. We've seen posts on NamePros and other places, as well as being asked directly many times, why there are not more competitors to the Godaddy (and to a lesser-extend other registrars) market domination in our industry. We have been very proud of our growth considering we've spent nearly nothing on marketing since we started about 8 years ago. It is a hard market to penetrate and a lot of doing so is built on trust. We feel as though we've earned that trust and have grown quickly as a result.

    Now, with increased investment, we feel we will be able to continue our expansion faster and by continuing with the same business model and philosophies that got us here. Investors are typically motivated to make changes based on financial issues rather than sound business decisions with long-term thinking and a true understanding of customers in mind. This is of course counter-productive and the reason behind failed acquisitions in our industry (and others), and a mistake we are acutely aware of and dedicated to not repeating. Also, our model has been and remains increasingly profitable. The model scales quite well so there should be no motivation for financial-types "meddling" :)
     
  12. offthehandle

    offthehandle . Gold Account VIP

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    That is excellent, that means satisfied customer referrals, and much respect to you as founders, as that was how I became a customer.

    Congratulations on selling a company you built from scratch, it must be nice to know you have succeeded and receiving a buyout. I am however skeptical like others here posting concerns in this thread. In my career I have been involved as an employee in a small 100 person business and witnessed 3 acquisitions by outside capital investors with one public NYSE listed company, and another acquired by a large Fortune 500 company. Both were M&A growth oriented plays. Consolidation and buying up competition. Everything starts off well, promises made by new owners to old owners that no changes will occur, then unfortunately within 6 months cost cutting and bean counters take over. That was modus operanda, then. Both are now history for various reasons, the owners were happy to get their checks. But in the end, nothing remained the same. Being listed publically increases growth pressures especially if additional investment is made. I hope your situation is as described and future growth is managed well and remains transparent to your loyal customer base.

    I really sincerely hope the best for this and your growth aspirations are not too high nor pressured externally by your holding company to increase profits (prices), and things remain non eventful and maintain a small, low overhead operation and keep your niche. All the best to your group!
     
  13. namesilo

    namesilo Active Member NameSilo Staff

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    Thanks for your well-wishes and feedback - they are very much appreciated!

    Yeah, we've been involved on both sides of the equation in previous businesses as well. We've seen good intentions get derailed in the ways you and others have listed here, and it is a shame when that happens. While we of course can't give a 100% guarantee how things will ultimately work out (whether we took this route, stayed the course or went another direction), I can tell you that we feel really good about the future of the business and the entire acquisition process being non eventful. There are no plans to relevantly increase operating costs or change the business in any way which would allow us to continuing controlling costs which is the starting point for the business model. Brisio understands this very well and there are no plans to increase operating costs.

    We're excited to let our actions back up our words in the coming days, weeks, months and years, and thanks again for the reply.
     
  14. Furquah

    Furquah The Captain VIP

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    @namesilo,

    You people are Awesome, don't knew about future but if the new company don't try to change things "you will be no 1 register at the end of year". But if they try to change something then your company will go back to where you get started.

    Good luck with new partner.
     
  15. namesilo

    namesilo Active Member NameSilo Staff

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    Thanks, very much appreciated!
     
  16. xeroox

    xeroox Established Member

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    Offtopic. Will you provide any new coupon to celebrate the aquisition? :xf.rolleyes:
    And congrats!
     
    Last edited: Mar 9, 2018
  17. namesilo

    namesilo Active Member NameSilo Staff

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    Ha! A very good idea :)

    Give us a few days and let us think of something...
     
  18. xeroox

    xeroox Established Member

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    Well we are all your fans. You know where to find us (y)
     
  19. creataweb

    creataweb Top Member VIP ★★★★★★★★★★

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    Congrats - hope it all works out well and you become a juggernaut but stay the same in regards to customers ;)
     
  20. namesilo

    namesilo Active Member NameSilo Staff

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    Thanks! Yes, that is certainly our goal and something we are very strongly committed to doing.
     
  21. Kassey Lee

    Kassey Lee 域名世界 VIP

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    I have moved most of my domains to NS. Only one last batch to go this month. BECAUSE their service is superb! Super fast and responsive! And prices are very competitive!

    Now, the fact is: the boss has changed, and will change again when it is listed. I, for one, will be watching and preparing to move on if thing goes downhill.
     
  22. namesilo

    namesilo Active Member NameSilo Staff

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    Thanks - appreciate the kind words! Thanks also for trusting us with your business, and we will not give you a reason to move :)
     
  23. SuperBrander

    SuperBrander Active Member VIP

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    @namesilo Congrats and good luck. You're a good registrar and I hope this change will mean good things for domainers. If you're planning on positive changes... please make fixing the expired domain auctions a priority.

    1. List expired domains at a point where owners can't renew the domains anymore or at least close to that point. Having to sometimes wait 30 days or so to know if a domain is renewed or not when the owner usually renews is maddening. 2. Stop forcing people to pre fund their account, then when the owner renews the expired domain and the sale becomes void, forcing the buyers to wait 60 days from the point of purchase till they can get the money back. I understand that you're afraid from charge backs but this practice isn't done by any other domain registrar and it's basically holding your clients' money hostage for 2 months on top of a failed sale.

    Thanks and again- good luck.
     
    Last edited: Mar 9, 2018
  24. offthehandle

    offthehandle . Gold Account VIP

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    Thank you for taking the time reply and respond, its admired.

    Just the fact you come into this forum and reply is self evident in your customer service and care, it’s really great. I have watched all the threads this past year and always professional and responsive. You need a JD Powers like nomination for customer service!
     
  25. namesilo

    namesilo Active Member NameSilo Staff

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    Hi, and thanks for the note and feedback. 2 responses...

    First, we probably will not be changing the timing on the expired domain auctions. We certainly understand the points you have raised. On the other hand, we can also report that our most negative customer interactions are with people who fail to renew their domains on time and then lose them to auction, or end up with higher prices in the restoration period. We believe our policies are fair, but we also need to take the experiences shared with us by customers into account. Part of this is to allow the longest grace period possible for renewal, which in turn means we need end auctions right before they enter the restoration period. Hope this makes sense, even though we do of course understand the frustration of bidding on domains only to see them renewed.

    Second, we will very likely be getting rid of our 60-day rule regarding refunds of account funds for bids on expired domains that do not work out. I think this will be a thing of the past within the coming days.
     

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