Hostgator acquired by EIG

subigo

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Oct 20, 2007
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lol. You thought they were bad before... just wait until EIG gets control.

There have been rumors flying around the web and the office about
HostGator being sold for many years now. I'd like to address these
rumors and put many of your fears to rest. I still own 100% of
HostGator and haven't collected a single penny towards any buyouts at
this time.

The latest rumor is the first that actually has some truth behind it.
I have indeed agreed to sell HostGator to Endurance International Group, which is why you're hearing stories
about EIG raising financing to purchase us. We are currently under
contract and if everything goes according to plan, EIG will be
purchasing HostGator in the next 3-4 weeks. This is the first time in
HostGator's history that we have ever reached an agreement on the
terms needed to complete a deal.

In the last few months, I've spent countless hours getting to know
EIG's CEO Hari Ravichandran, and I can honestly say that he is one of
the most trustworthy and knowledgeable people that I've ever met. In
other deals we've looked at, the potential buyers have only seen
HostGator as a slot machine and that's not true of Hari. He clearly
understands that HostGator is the 800 pound gorilla that it is today
thanks to all of you who provide the legendary support that HostGator is known
for.

It's only natural for all of you to be apprehensive towards change and
the fear of possibly losing your job. I can write whatever I want in order to
cover for EIG, but I would rather let the facts speak for themselves:

When I first heard about EIG purchasing Bluehost in November 2010, I
was extremely ecstatic. The first thoughts that came to mind were that
EIG was going to destroy the company, resulting in one of our biggest
competitors going the way of the dodo. However, rather than plunder
and pillage, they've hired and flourished. Bluehost was at 280
employees when the sale closed and they have 450 today. Their
management team has stayed the same and the culture has stayed the
same. Now, the Bluehost culture, employees, and philosophy have taken
hold to become the new status quo of EIG.

I'm confident the same will happen once again with the best of
HostGator culture, ideas, people, and leadership coming together at
EIG to create a more powerful hosting company than the world has ever
seen. In fact, I've heard that EIG with HostGator will be even bigger
than GoDaddy.

Once this deal is complete, I will continue to own all of the
HostGator occupied buildings through Oxley Leasing. EIG and I will
soon have a leasing deal in place that will not only include all of
the current occupied space leased, but will also expand Austin by
30,000 square feet as well as Houston by another 10,000-20,000 square
feet. Hari has also told me that one of his first acts of business
will be to do a major renovation of the Houston office. If EIG planned
on downsizing, they wouldn't be signing such huge expansions in both
Houston and Austin.

HostGator will be EIG's largest acquisition to date and with that it's
going to create countless opportunities for each and every person. Not
only at HostGator, but also at other EIG brands. I can't stress enough how
instrumental it will be for EIG to replicate HostGator's strengths
across all of their brands, and to do that, they will need HostGator
leaders and know how.

There are many of you who are going to call me crazy for deciding to
sell during a time in which HostGator has experienced unprecedented
growth and success. I'll do my best below to share a few of the many
reasons behind my decision:

* I want to travel the world before my wife and I have kids.
* I've been doing HostGator since I was 18, and I'm looking for a new
challenge.
* I'm extremely worried about the financial path our country is headed down.
* Taxes will be going up significantly in 2013, making it more
difficult for business owners.
* I've failed more times than I can count to launch software that
would allow us to compete as a registrar.
* We have tried and failed to develop a billing system that has
automated and can integrate with our key systems such as chat, phone,
affiliates, and tickets. I think we are finally on the right track,
but unfortunately I no longer have the patience to wait for it to all
come together. Thankfully EIG has tackled a lot of these challenges
already.
* I have practically 100% of my chips in HostGator and if something
should ever happen to the company, I'd more than likely be bankrupt in
a matter of a few months.

I could stick with HostGator for a few more years and turn it into a
multi-billion dollar business, but I think now is the right time for
me to move on and to let the company continue to grow and succeed
under EIG.

If any of you have any questions, feel free to email me at
brent@hostgator.com and I'll do my best to get them answered. The key
thing to remember is that this deal isn't complete yet, and if and
when it completes, Adam Farrar and the rest of management won't be
going anywhere.


Sincerely,

Brent Oxley
 


^Irony.

I've been migrating away from HG for a while now; they're doing everything they can lately to squeeze out ppl with tons of blogs. Sounds like we have an answer why now... New management.
 
That was a really interesting e-mail. Weird business style to go into so much depth explaining your actions, i fancy myself more the laid back and mysterious gentleman. Interesting case study nonetheless.

This guy is making badboy moves though, what was the acquisition price at? I'd assume around 1 billion.
 
Well, you live in a country that provides better opportunities than other countries, it is only natural that you get charged more. You get what you pay for.

I know this is a very tired meme by now but what else can I say...

943227833d1305709183-english-spam-thread-not-sure-if-troll-just-very-stupid-28n1299498207760-29.jpg
 
^Irony.

I've been migrating away from HG for a while now; they're doing everything they can lately to squeeze out ppl with tons of blogs. Sounds like we have an answer why now... New management.

How many blogs? and that isn't the reason. They haven't technically sold yet.
 
I know this is a very tired meme by now but what else can I say...

Fair enough, but you live in a third world country right? So you do know that the Government and the situation there can change in an instant and your hard started business can just evaporate overnight.

Not to mention the infrastructure, good in maybe a quarter of the biggest city but crap anywhere else. Off course if your business is online that may not affect you that much.

The tax may not be that bad or you can avoid it entirely, but the cash you need to pay to overzealous officials can really add up making the business just no longer feasible sometimes. Not to mentioned the "being conned" feeling you got after paying these kind of money, even though they smile and pretend to be your friends.

I stand by my comment
 
All true and still far better than the over-regulated confiscatory legalized corruption of western governments. Meme stands strong.

Although...it seems weird to me to call Thailand a third world country with roads, banking, water, power, internet, wireless all fully developed nation wide except in some very remote areas. Over-zealous officials is something you have in the west while here it is just the opposite with them mostly looking for a place to sleep. The corruption here is direct and as a result far more efficient and inexpensive versus the indirect legalized corruption of the west which results in endless red tape and far higher costs. So meme stands taller and stronger.
 
All true and still far better than the over-regulated confiscatory legalized corruption of western governments. Meme stands strong.

Although...it seems weird to me to call Thailand a third world country with roads, banking, water, power, internet, wireless all fully developed nation wide except in some very remote areas. Over-zealous officials is something you have in the west while here it is just the opposite with them mostly looking for a place to sleep. The corruption here is direct and as a result far more efficient and inexpensive versus the indirect legalized corruption of the west which results in endless red tape and far higher costs. So meme stands taller and stronger.

No disrespect, but I think you're business is online where you don't deal much with government officials. You probably don't feel anything when the red shirt fought with the yellow shirt and the airport got closed and the shitfest that ensued etc

If you try to build off line projects like power plants, plantations etc, you'll be amazed at just how many people you have to feed from the local government to the central, dubious permits and licenses. Heck you can't even find a central place where you can see all regulations that applies to you, its always sneak up on you, then you have to pay your way out.

"ooh, its a big problem mister, very big, mister must pay" (in Gollum voice)

and fuck you hehejo, you got something to say, just say it
 
No disrespect, but I think you're business is online where you don't deal much with government officials. You probably don't feel anything when the red shirt fought with the yellow shirt and the airport got closed and the shitfest that ensued etc

If you try to build off line projects like power plants, plantations etc, you'll be amazed at just how many people you have to feed from the local government to the central, dubious permits and licenses. Heck you can't even find a central place where you can see all regulations that applies to you, its always sneak up on you, then you have to pay your way out.

"ooh, its a big problem mister, very big, mister must pay" (in Gollum voice)

and fuck you hehejo, you got something to say, just say it

For projects like that I know you are correct. Any really big project has scores of people coming at you for a bribe or kickback. Is it ultimately much different than the western style in terms of cost and schedule? Certainly frustrating if you don't know what to expect in advance but otherwise it's just another way of doing business.

For smaller scale stuff it's simple, fast and cheap. One simple low cost permit to build a house. Or just build whatever you like and if you are unlucky a cop comes around and asks to see your permit and instead you just show him a picture of the King (on a few bank notes). Drill a well, re-plumb, install rainwater catchment, etc, etc. No overreaching regulations and union backed obstacles. Manage your rental property without some Fonda-noid passing confiscatory rent control laws (I lived through SoCal rent control socialism).

Anyway this is off topic for this thread. This really belongs in that 3rd World S*hole thread. I get the feeling you have actually done business in Thailand. If so your contributions to that other thread would be valuable to a number of people.