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GoDaddy is now the biggest player in the domain name sales channels both for new registrations and selling in the secondary market. With the upcoming release of

GoDaddy is now the biggest player in the domain name sales channels both for new registrations and selling in the secondary market. With the upcoming release of new gTLDs, they couldn't be better positioned to sell more domain names and make more money. The author's conclusion here is kind of obvious, but wow is he wrong in his sentiment that this is going to somehow be good for consumers. Because GoDaddy is private, its strategy to dominate by size and market share alone is kinda evil. How this company has managed to stay private for so long while getting so big and controlling so much bandwidth -- now this would be an interesting case study. A lot of domainers don't use GoDaddy and don't want to put their domain names there. Acquiring Afternic solves the technical and business problems that may have blocked GoDaddy in previous attempts to gain more of the secondary market. Hmm. So GoDaddy is trying to hide from itself?

ohashi 13y ago
Honestly, I am as shocked as you are about the positive conclusion. I try to put aside personal feelings when thinking about it from a business perspective. The downside here I think is going to be for domainers and competitors in the domain space. This move won't put other registrars out of business, there is plenty of competition to keep them price competitive, so consumers don't lose here. It does change the secondary market and make it easier to buy existing domains. I think that is a win. Right now, most deals involve emailing whois, escrow and other hassles. With AfternicDLS and major registrars on board, this could be eliminated and become as easy as going through check out. That's a win for consumers. Everything else I don't expect to see much change for them.
gaadd33 13y ago
Does GoDaddy control that much bandwidth compared to some hosts like Hurriance Electric/OVH/Hetzner/etc? Also GoDaddy was recently (past 5 years I think) bought by a private equity firm, so the owner cashed out via that rather than an IPO.
- ohashi 13y ago
  Bob Parsons is still the largest single share holder I believe. KKR, Silver Lake bought in for 2.25B. Not sure on actual infrastructure size vs other companies since they are focused on small business market rather than being an infrastructure provider.
  - Osiris 13y ago
    Based on a five year time line from KKR/Silver Lake, I would expect an IPO within 2-3 years. This recent change in leadership, direction, and acquisitions is evidence of the push toward IPO.
    - ohashi 13y ago
      Maybe this time around it will actually happen. They tried to IPO in 2006 as well. I am guessing at this size there aren't many potential buyers considering their revenue was 1.3B last year. I think their growth might have slowed down a bit, not sure how/if that would affect a potential IPO. I've got some gaps in years I could find data for: 2003 39M 2004 73M 2005 140M 2006 2007 2008 500M 2009 750M 2010 2011 1.14B 2012 1.3B
      - Osiris 13y ago
        Growth has been around 15% this year, but it's expected to get up to 20% as various new marketing and internationalization strategies take place.

ohashi 13y ago

Honestly, I am as shocked as you are about the positive conclusion. I try to put aside personal feelings when thinking about it from a business perspective. The downside here I think is going to be for domainers and competitors in the domain space. This move won't put other registrars out of business, there is plenty of competition to keep them price competitive, so consumers don't lose here. It does change the secondary market and make it easier to buy existing domains. I think that is a win. Right now, most deals involve emailing whois, escrow and other hassles. With AfternicDLS and major registrars on board, this could be eliminated and become as easy as going through check out. That's a win for consumers. Everything else I don't expect to see much change for them.

gaadd33 13y ago

Does GoDaddy control that much bandwidth compared to some hosts like Hurriance Electric/OVH/Hetzner/etc? Also GoDaddy was recently (past 5 years I think) bought by a private equity firm, so the owner cashed out via that rather than an IPO.

ohashi 13y ago
Bob Parsons is still the largest single share holder I believe. KKR, Silver Lake bought in for 2.25B. Not sure on actual infrastructure size vs other companies since they are focused on small business market rather than being an infrastructure provider.
- Osiris 13y ago
  Based on a five year time line from KKR/Silver Lake, I would expect an IPO within 2-3 years. This recent change in leadership, direction, and acquisitions is evidence of the push toward IPO.
  - ohashi 13y ago
    Maybe this time around it will actually happen. They tried to IPO in 2006 as well. I am guessing at this size there aren't many potential buyers considering their revenue was 1.3B last year. I think their growth might have slowed down a bit, not sure how/if that would affect a potential IPO. I've got some gaps in years I could find data for: 2003 39M 2004 73M 2005 140M 2006 2007 2008 500M 2009 750M 2010 2011 1.14B 2012 1.3B
    - Osiris 13y ago
      Growth has been around 15% this year, but it's expected to get up to 20% as various new marketing and internationalization strategies take place.