Web Hosting Company GoDaddy Sold for $2.25B to Private Equity Firms

On July 4th, 2011, wrote:

Internet domain registrar, Web hosting company, and SSL Security Certificates provider GoDaddy has been sold to a consortium of private equity firms in a deal reportedly worth $2.25 billion. The company, which grew by 25 percent to $947 million from 2009 to 2010, and which has been expecting 2011 revenues to hit $1.1 billion after managing more than 48 million domain names and 9.3 million customers, will now enter into a strategic partnership with venture capitalists KKR & Co., Technology Crossover Ventures, and Silver Lake Partners. GoDaddy follows in the footsteps of Groupon, Zynga, and Skype as the latest in Silver Lake Partners’ series of technology investments. “I’ve always said we would make a move like this when the right deal with the right partners could help us do the right thing for our customers and our employees,” said Go Daddy CEO and Founder Bob Parsons in a press release. “This is it! We are partnering with KKR, Silver Lake and TCV – Read the full article

Microsoft Acquires Skype for $8.5 Billion

On May 12th, 2011, wrote:

If many who were expecting a blockbuster acquisition in the tech industry were disappointed with the recent Google-Groupon deal that never happened, well – a bigger deal just came through – to the tune of $8.5 billion in cash. In a definitive agreement announced Tuesday, software giant Microsoft Corporation has acquired Luxembourg-based Internet phone service and communications company Skype. The investor group, Silver Lake, which bought Skype from eBay in 2009, oversaw the transaction. The deal represents one of the highest-valued acquisitions in years, and is expected by both companies to soon increase market opportunity as well as benefit individual consumers and businesses. It will, in particular, integrate the Skype platform and connect its 170-plus million users to a portfolio of Microsoft products, including Lync, Outlook, Xbox LIVE, and Kinect. “Microsoft and Skype share the vision of bringing software innovation and products to our customers,” said Skype CEO Tony Bates, who will now become the president of the new Microsoft – Read the full article

Daily Deal E-mails Valuable to Most U.S. Subscribers

On April 15th, 2011, wrote:

If you’re the type of person who can’t wait to open your E-mail and see the newly arrived daily deals in your inbox, well – you’re not alone. More than half of all Internet users in the U.S. find value in these E-mails, too – enough to make them subscribe to at least two daily or weekly shopping E-mails or newsletters. According to a report published recently by market research firm eMarketer, a surprising 56 percent of adult Internet users in America subscribe to at least two “daily deal” E-mails or online newsletters. 61 percent of these subscribers, moreover, said that they find enough value in these E-mails to open and read all the messages. And they don’t keep the E-mailed online deals, discounts, sales, and freebies for themselves, either. According to the report – which cited research from Yahoo! Mail and Ipsos MediaCT – 45 percent forwarded daily deal E-mails to friends and family at least once a week; – Read the full article

After Snubbing Google, Groupon Raises Nearly $1 Billion in Venture Funding

On January 13th, 2011, wrote:

It looks like snubbing the world’s number one search engine was the right move after all. Just a little over a month after rejecting Google’s $5.3 billion offer, daily deals website – and one of today’s fastest growing companies – Groupon has raised $950 million in one of the largest venture funding rounds of all time. The financing came from a long list of venture capital firms and investors, including Andreessen Horowitz, Greylock Partners, Accel Partners, Battery Ventures, DST, Kleiner Perkins Caulfield & Byers, Silver Lake, Maverick Capital, Technology Crossover Ventures, Mail.Ru Group, and New Enterprise Associates. “We’re thrilled that Groupon has earned the confidence of some of the world’s most respected investment firms,” said Andrew Mason, founder and CEO of Groupon. “With their support, we will continue on our mission to change the way people shop locally and serve the world’s local businesses.” Added Greylock Partners venture capitalists Reid Hoffman and James Slayet in a TechCrunch guest blog post: “We – Read the full article

This Week in Online Marketing: Google Groupon Deal, Diaspora

On December 1st, 2010, wrote:

Google-Groupon Deal? Search giant Google is reported to be offering as much as $6 billion for leading e-Commerce coupon site, Groupon. According to a number of media sources, the deal’s initial payment will be worth about $5.3 billion, with the remaining $700 million to be used as an incentive for keeping Groupon’s employees. The deal, if it happens, is going to be Google’s largest acquisition yet, much bigger than its successful $3.1 billion bid for DoubleClick and the $1.65 billion price tag of the company’s YouTube deal. Launched in November 2008 and headquartered in Chicago, Illinois, Groupon is a social shopping network that delivers daily deals to users in cities across the U.S., Canada, and Europe. While the price of the rumoured acquisition seems high – Groupon only has an estimated $600 million in revenue – industry observers say that the coupon site is the clear leader in a rapidly growing new category on the Internet. Its overwhelming success in – Read the full article