In a move that left virtually every web domain owner in the world a little bit nervous, the world’s largest domain registrar was sold in a deal valued at $2.25 billion.
But let’s not fret quite yet. In fact, CEO Bob Parsons told The New York Times, “This isn’t a sale. It’s a partnership that’s reinvesting in GoDaddy.” So, it appears that Parsons isn’t bailing ship. He will become the company’s executive chairman and remain a large stakeholder.
GoDaddy’s sales rose by 25% from 2009 to 2010, and projects $1.1 billion in sales for 2011. It’s clear that GoDaddy’s new investors understand the cash cow that GoDaddy is and the monopolistic hold they have in the market. As a consumer, the fear lies in whether or not they will continue to take a long-term growth perspective on the company, or ramp up domain costs to try to milk some more money out of their current clientele.