GoDaddy acquires Marchex’s domain name portfolio for $28 million

An in-depth look at GoDaddy’s purchase of over 200,000 domain names and what it means for domain name investors.

GoDaddy Archeo domain name

GoDaddy has acquired Marchex’s Archeo domain name portfolio for $28.1 million.

GoDaddy (NYSE: GDDY) has acquired about 200,000 domain names from Marchex (NASDAQ: MCHX) for $28.1 million, plus a potential earnout.

Marchex has owned the portfolio for a long time, and it includes most of the 100,000 domains it acquired from domain name investor Yun Ye for $164 million in 2005. The company didn’t focus on selling its domain names until 2012, when it created a separate domain-focused business called Archeo. The plan was to spin Archeo off as its own publicly traded company, but it canceled these plans in 2013.

GoDaddy SVP and GM of Domains Mike McLaughlin said GoDaddy looked at the domain portfolio as a unique opportunity. Click here to continue reading…

Domain investing success story with Michael Castello – DNW Podcast #28

Michael Castello’s twenty year journey in domain names.

Domain Name Wire podcastMichael Castello, CEO of Castello Cities Internet Network, discusses the amazing story of how he got into the domain name business and picked up great domains like Nashville.com and Whisky.com. Like many early domain name investors, he stumbled upon domain names when life wasn’t going quite as planned. In this episode, he tells the story of how he sold Whisky.com for $3.1 million about a year ago. He also discusses the past, present, and future of the domain name business.

Also: .Sucks battle, Lady Gaga, and GoDaddy IPO.

Subscribe via iTunes to listen to the Domain Name Wire podcast on your iPhone or iPad, or click play below or download to begin listening. (Listen to previous podcasts here.)

How domain name stocks did on GoDaddy’s IPO day

Competitors also get bump as GoDaddy soars.

GoDaddyGoDaddy went public yesterday and shares immediately shot up 30%, giving the company a $4 billion market cap. In very early trading today it’s up another 3%.

There are a number of similar public companies out there. I think the two closest comps are Endurance International (which owns Domain.com and a number of shared hosting companies) and Web.com.

Endurance International Group (EIGI) shares were up about 4% yesterday, giving the company a $2.6 billion market cap.

Like GoDaddy, EIGI carries a lot of debt. But the reason for the debt load is different. GoDaddy has debt because of the 2011 buyout; Endurance was a debt-powered rollup.

Web.com (WWWW) was up about 3% yesterday and has a market cap of just shy of $1.0 billion. The company owns Network Solutions and Register.com.

Shares of three other domain name companies were essentially flat yesterday: Rightside (NAME), Tucows (TCX) and Verisign (VRSN). None of these comps are as similar to GoDaddy as EIGI and WWWW.

GoDaddy sets IPO range, plans to raise $400M at up to $3B valuation

Company sets anticipated range in SEC filing.

GoDaddyGoDaddy revealed a planned IPO range of $17.00-$19.00 per share in an SEC filing this morning.

At the mid price point of $18.00, GoDaddy will raise $396 million. If it prices at the high end, and its underwriters exercise and option to purchase 3.3 million more shares, it could reach $481 million.

If it prices at $19.00 per share, the IPO would value GoDaddy at just shy $2.9 billion. On the low end it will be about $2.6 billion.

The private-equity investment in GoDaddy three years ago is rumored to have valued the company at $2.25 billion.

GoDaddy will trade under the ticker GDDY on the New York Stock Exchange.

GoDaddy names Chief Customer Officer, new CMO

One of GoDaddy’s original employees moves to new position.

GoDaddy announced today that long time Chief Marketing Office Barb Rechterman will be the company’s Chief Customer Officer, a newly-formed position.

According to a press release, this new position is “responsible for aligning the company’s products, services and engagement models with strategic needs and values of GoDaddy’s unique customer base.”

Rechterman has been with GoDaddy since it was founded in 1997. She has been a driving driving force behind the company’s marketing, even though most of the credit externally has been given to company founder Bob Parsons.

Phil Bienert, a former AT&T executive who has been with GoDaddy since 2013, will fill Rechterman’s shoes as Chief Marketing Officer.