GoDaddy’s amended s-1 filing shows that it paid $42 million plus up to $3 million in bonuses for email marketing firm.
GoDaddy filed an amended S-1 with the SEC yesterday.
Most of the changes from the previous S-1, filed in August, are subtle. The latest filing does not include third quarter results.
The most notable change in the new filing is the disclosure of its purchase price for email marketing firm Mad Mimi. The filing discloses that it paid $42 million for the company, plus up to $3 million in performance-based bonuses. The acquisition closed in August.
Other changes in the amended filing include:
- Changing the amount it says it spent on technology & development and marketing & advertising through the end of 2013.
- Some changes to results from predecessor entity dating to 2011. Some of this is due to a reclassification of merger and related costs, but other small changes involve everything from technology costs to marketing.
- A change in the 2013 general and administrative cost.
- Removing an unlevered free cash flow calculation
- Adding a disclosure that Mad Mimi might have customers in countries subject to US embargoes (it already had a disclaimer for MediaTemple).
(Thanks to @georgekirikos for helping me compare the amended s-1 filing.)
dotdude says
Does anyone know how much GoDaddy paid for Afternic? Strange they would buy another business when Afternic has not gotten any improvements since it was purchased over a year ago. Afternic is a gold mine that seems to be totally ignored by GoDaddy big-wigs (I get the feeling that GD management doesn’t own a single domain themselves). The number of Domain Listings for sale (5,763,703) has not changed in years. The domain management interface is the same clunky process (no global editing at all). Portions of the Afternic website can’t even be accessed by certain browsers out there! Just one domain sale can net GoDaddy hundreds $$$ in clear commission, but so far they haven’t been motivated to promote their huge domain database. In comparison, I wonder what the profit expectations is for Mad Mimi? GoDaddy has been losing over 200 million each year (NY Times, CNN) so they better do something!
Andrew Allemann says
@dotdude,
The answer to your first question is “no”. They lumped together the acquisition price with a number of other acquisitions in the same year.
As for neglecting Afternic, it’s very much the opposite. They’ve spent most of their time since acquiring it integrating it with GoDaddy, which is a huge lift for domain sellers.
dotdude says
It would be interesting though to get a ballpark figure of Afternic’s purchase price. I doubt not too much since it would only take a short time to get the word out that one can now list domains with GoDaddy without being registered there, plus at a lower commission rate than before. Kind of like shopping for CD’s on Amazon, they have an invitation “Have a CD to sell?”. That brings more to the marketplace.
As for GoDaddy getting high marks for showing Afternic domains, I have to disagree. A whole shopping center can be built in less than a year (I drive by one). As I noted in a previous post, only a small fraction of Premium Afternic domains are currently shown in GoDaddy’s registration channel. Even this only started a month ago. Using the words ‘SmartMedia” as an example, searching at GoDaddy you’ll get 10 results that are Premium, about 10 results that are $2.99 specials (how do they make money on those?), and about 70 matching results in various country codes and new TLD’s. Unfortunately, a set fixed limit is shown, so other great Afternic premiums are left out.
Doing the same search directly on Afternic there’s a BIG difference. Over 40 excellent results are returned almost all .com’s. GoDaddy does not make any reference to Afternic nor provide even a link for customers to see other domains available to buy. Why? They are the SAME company! Hardly integrating when they’re leaving out and keeping secret most of their Premium domain database.
Can you imagine a fine jewelry store mixing cheap plastic jewelry in the same showcase with high-end solid gold collections?
Andrew Allemann says
All I know for sure is they paid somewhere between $0-$70 million for Afternic. That was the total reported for for acquisitions.
Brad Bowman says
Godaddy has been around 15 years, isn’t it about time they start making a profit and stop losing $200 Million dollars constantly? It’s not like it is a startup. It’s already a huge company. Huge red flags if they can’t be making a profit by now.
Sergio says
could it be, that, it is unprofitable to report segmented profit ? and to keep investors happy, report “profitability”, by precisely “acting” or be ( financially ) perceived as a start-up, since … forever !?!? if that’s how they want to drive aftermarket tapping, we might as well go back in time and starting trading in Bazzars …….