Australian registrar drops Web.com despite higher bid.
It looks like Web.com’s planned acquisition of Australian domain name company WebCentral isn’t going to happen after all.
Web.com offered AUS 10 cents per share ($12.2 million total) for the company in July. An Australian internet company, 5G Networks, then made an all-equity acquisition offer. Web.com increased its bid to 15 centers per share, and then 18 cents, but WebCentral determined that the 5G Networks offer is better. This is despite the Web.com offer being more than the 5G Networks offer at today’s share price.
WebCentral’s justification for accepting the lower price is that the equity in 5G Networks will allow shareholders to realize upside to the business, and it should be easier to close the 5G Networks offer compared to the Web.com deal.
Web.com will receive a $500,000 breakup fee for its troubles.