news CVC Strikes $1.5 Billion Deal for GoDaddy Rival Namecheap

CVC Capital Partners is closing in on buying a majority stake in Namecheap, in a deal that values the big domain registrar and web-hosting provider at about $1.5 billion including debt, according to people familiar with the matter.

The global buyout firm is expected to work closely with Richard Kirkendall, Namecheap’s founder and chief executive officer, who will retain a big stake in the company, the people said.

https://archive.is/i9vOk (without paywall)

https://www.wsj.com/business/deals/cvc-strikes-1-5-billion-deal-for-godaddy-rival-namecheap-a38fd014

 

[silentg]

Richard Kirkendall could go on an acquisition spree with the money and gain more market share.

 

[silentg]

https://twitter.com/x/status/1966583158322696473

 

[Future Sensors]

 

[bmugford]

These type of private equity deals always end up being bad for customers.

Private equity will do to NameCheap what they did to GoDaddy and what GoDaddy did to Dan.

Things are only going to get more expensive and worse.

https://en.m.wikipedia.org/wiki/Enshittification

Brad

 

[Future Sensors]

In the short to medium term, this may well create more balance in the market and give GoDaddy the insights needed to improve their offerings and pricing. It's not necessarily a negative for the industry overall.

@GoDaddy, are you open to suggestions from this community?

 

[carob]

These type of private equity deals always end up being bad for customers.

CVC method:

cut costs (= less staff)
increase prices
seek "efficiencies"
take on lots of debt
show healthy profits and growth and sell asap at a big profit (whether or not long term business prospects are good)

 

[AEProgram]

These type of private equity deals always end up being bad for customers.

Private equity will do to NameCheap what they did to GoDaddy and what GoDaddy did to Dan.

Things are only going to get more expensive and worse.

https://en.m.wikipedia.org/wiki/Enshittification

Brad

I agree. It's easy to raise the revenue of a registrar because most people won't transfer out. In many examples Doctorow gave, the platforms knew users cannot switch easily. If namecheap has a lot of regular non domainer users (and I think they do) they could double the price of a .com renewal and they will lose almost no customers. Most people with one or two names, will just keep their name there. They can also wave that renewal increase for those with 5 or more domains and not lose domainers. Or they can setup a domainer club for 99 a year that keeps you at the lower price.

Smart move by the investors.

 

[NameGroove]

These type of private equity deals always end up being bad for customers.

Private equity will do to NameCheap what they did to GoDaddy and what GoDaddy did to Dan.

Things are only going to get more expensive and worse.

https://en.m.wikipedia.org/wiki/Enshittification

Brad

This study disagrees with your perspective

https://centers.tuck.dartmouth.edu/uploads/cpee/files/Is_Private_Equity_Good_for_Consumers.pdf

 

[bmugford]

This study disagrees with your perspective

https://centers.tuck.dartmouth.edu/uploads/cpee/files/Is_Private_Equity_Good_for_Consumers.pdf

Awesome.

How did private equity make @GoDaddy better?

The only goal of private equity is to make shareholders money.

That only happens with more revenue, often via higher prices.

And lower expenses, often at the cost of support and services.

The domain world has a problem where any time someone builds something good, bigger money comes in and ruins it.

Brad

 

[NameGroove]

Awesome.

How did private equity make @GoDaddy better?

The only goal of private equity is to make shareholders money.

That only happens with more revenue, often via higher prices.

And lower expenses, often at the cost of support and services.

The domain world has a problem where any time someone builds something good, bigger money comes in and ruins it.

Brad

You are picking one company as an example. The study compared 145 companies. Obv sometimes consumers are not better off. But your perspective didn't say "sometimes". It said, "always" end up being bad for customers.

Perhaps you meant in GoDaddy's case? Or in the limited cases you're aware of?

 

[bmugford]

You are picking one company as an example. The study compared 145 companies. Obv sometimes consumers are not better off. But your perspective didn't say "sometimes". It said, "always" end up being bad for customers.

Perhaps you meant in GoDaddy's case? Or in the limited cases you're aware of?

I mean you cherry picked one study.

Many others show quite the opposite, especially in certain fields like healthcare.

I haven't experienced many cases where private equity lead to a better customer experience.

I have experienced many that result in higher costs and worst service.

Brad

 

[bmugford]

What's the actual theory behind how this would improve NameCheap/Spaceship when it comes to the customer experience?

You think investment money is going to come in and lower prices and commissions?



Brad

 

[carob]

Seriously, if you take over a well-run, profitable business with the intention of making it more profitable, what are your options?

Increase sales and marketing, cut costs, do some accounting magic to make it look more profitable, sell off assets, buy out competitors? What if the business was already doing a good job? You won't just let it keep going like that, you'll cut costs and put up prices any place you think you can get away with it.

 

[bmugford]

Increase sales and marketing, cut costs, do some accounting magic to make it look more profitable, sell off assets, buy out competitors? What if the business was already doing a good job? You won't just let it keep going like that, you'll cut costs and put up prices any place you think you can get away with it.

All you can do is increase revenue via more customers and/or higher prices.

Lower expenses by sacrificing support and services. Less, or less qualified employees.

The investors will probably extract every dime possible, then try to sell it to an even bigger fish.

Brad

 

[SpareDomains]

All you can do is increase revenue via more customers and/or higher prices.

Lower expenses by sacrificing support and services. Less, or less qualified employees.

This is the reason years ago I gave gobloads of cash to GoDaddy and since the changes I spend $0 there and do almost zero domain sales through them. Too many options out there now to receive 100% of your domain lead information at lower costs Efty, NamePros=0%, SpaceShip=5%, Atom White Label=7.5% etc... than to accept anonymous offers from anonymous brokers with just a first name and last initial at 15-30% that I don't feel have your best interests in mind during negotiations.

See how this goes as SpaceShip on my end was more of something new I was just starting to play with so not much changes on my end if it goes bad as barely getting into it. Where GoDaddy I was all in and now have done a complete reversal. I know they notice as they email occasionally wanting to do a portfolio reviews etc... but I've been so done with GoDaddy for years now due to their money grabbing changes.

 

[NameGroove]

I mean you cherry picked one study.

Many others show quite the opposite, especially in certain fields like healthcare.

I haven't experienced many cases where private equity lead to a better customer experience.

I have experienced many that result in higher costs and worst service.

Brad

What's the actual theory behind how this would improve NameCheap/Spaceship when it comes to the customer experience?

You think investment money is going to come in and lower prices and commissions?



Brad

First you said private equity "always" harms customers. That is an absolute claim, and my counterexample from a peer review study of 145 companies disproves it. Your perspective is based on limited personal experiences. And personal experiences are anecdotal evidence. For example, if I trotted someone in here who had alternate personal experiences would you change your beliefs? Obv not. So continuing to state Brad's "personal experiences" over and over doesn't persuade anyone. It's simply one mans personal experience.

Second re your “theory” question: lower prices and commissions are not the only way a PE firm can add value. Firms can fund product expansion, improve tech, streamline ops, and scale infrastructure potentially faster than a founder led company might. That can translate into better platforms, stronger security, new features, or broader deals across industries. Whether that happens at NC depends on execution, but dismissing the possibility as laughable ignores how capital investment has created consumer benefit in many industries.

That’ll be all my responses here. Someone relying on personal anecdotes and dismissing all other evidence, opinions, or studies as laughable is not engaging in a serious discussion, and not worth further replies.

 

[Future Sensors]

Community note

Do not let private equity drive a wedge between us, for that is the victory they most desire.

 

[carini]

Sad news. Namecheap has been a trusted name in the industry, and its acquisition by a financial shark raises serious concerns about its future ethics and reliability.

 

[Mkt Sales Leads]

Richard Kirkendall could go on an acquisition spree with the money and gain more market share.

He should buy Unstoppable