GoDaddy to go public

[Arpit131]

The IPO market should end the first quarter with a bang as GoDaddy goes public during the shortened holiday week.
GoDaddy aims to raise $396 million at a market cap of $3 billion, or an enterprise value of about $4 billion. Acquired by KKR, Silver Lake and TCV for $2.25 billion in 2011, this domain name registrar behemoth manages about a fifth of the world's Internet domains. GoDaddy plans to continue a mix shift toward higher-margin website building services while managing its debt. 25 LBOs have IPO'd in the past twelve months, averaging a +2% first-day pop and +28% thereon.

Source: Nasdaq

How do you think this is going to affect the services and prices?
Also, are you applying for the IPO?

 

[Electric-Shadow]

They already have the highest renewal rate of all the main registrars and they make a ton of money through auctions and the highest commission fees in the aftermarket via Afternic. If they hike up prices much more they'll loose good customers.

 

[FPForum]

I don't see prices going up really. If anything, I think we could see less coupon codes. GoDaddy has multiple streams for revenue, and domain registrations are just one of them. As mentioned in the initial post, we might not even see anything happen domain-wise, as they are wanting to start doing more with the website building services.

 

[cdboard]

I don't see prices going up really.

they have raised the cost of three things I use: DDC, auctions, and backorders.


wrt going public, it will be interesting to watch what happens to their stock price after it has been trading for a while.

according to this article, they have not made a profit since 2009. the company will have to make a profit eventually.

http://www.zdnet.com/article/godadd...y-at-2-87-billion-but-profit-concerns-emerge/

 

[thekiller]

They may reduce promo codes, They have already increased Auctions commissions.

 

[RU]

backorders.

You gotta be kidding? Godaddy's backordering - sleep backorders.
I register a domain faster than Godaddy backordering. lol

 

[Domainace]

Not much profit in registering domian names, so I can see why they would like to use that as a lead generator to sell up. But I can't see much future in website building - it's getting easier and cheaper all the time. And it requires a lot of hand-holding.

 

[Beezy]

They took on a bunch of debt from private equity firms over the past few years to expand and buy up media temple, etc...now they have to pay it back. That's all this IPO is. A way to generate cash and pay off debt.

 

[slimjim270]

Post-IPO, they will likely leverage their new capital and start an acquisition binge to build (expand into) new revenue streams.

Additionally, as a public company with stock liquidity, they will leverage their stock for purchases.

What kind of companies will they acquire?

- secondary services companies.
- companies where they can leverage their vast customer data for accelerated (profitable) growth.
- other registars to build / expand their customer base.
- new technologies that they can sell to their existing customer base.

Did they list a "use of proceeds" in the S1 filing?

-Jim

 

[bytedo]

^^ Make a move on Sedo, Flippa, dns, top hosting companies, top parking companies, escrow .com?
Then we all have to worship at the altar of God daddy

 

[Name Trader]

@cdboard - I'd like to hear why you use GoDaddy for backordering?

 

[Joseph Green]

(musical notes)
GoDaddy, GoDaddy, he's our man! If he can't do it, no one can!!
(musical notes)

 

[MillionDollarDomain]

Absolutely, Godaddy's back ordering is so pathetic..

 

[cdboard]

they are mostly a matter of convenience for low-value names. the kind that are not backordered for $59 with other companies.

 

[Name Trader]

@cdboard - You'd be better off using Pheenix or Dynadot rather than GoDaddy.

 

[Nazz]

I am sure they make money off renewals which is their aim..

Adding their strong marketing campaign towards their website building services which is only stating the obvious as they look to cash in..

 

[Name Trader]

Congrats to GoDaddy. They sold their stock at $20/share. They went up 30% on the first day of trading, to $26. To value the company at over $4B. Nice return on the $2.25B they were valued at when they were bought out.

 

[abdussamad]

They already have the highest renewal rate of all the main registrars and they make a ton of money through auctions and the highest commission fees in the aftermarket via Afternic. If they hike up prices much more they'll loose good customers.

Even with all that they are running at a loss.