Site5 and Verio accquired by EIG

[Coastercraze]

Looks like EIG grabbed a couple more brands

WHT thread:

http://www.webhostingtalk.com/showthread.php?t=1503002

Original source:

http://www.marketwatch.com/story/endurance-international-group-reports-2015-second-quarter-results-2015-08-04

 

[drmike]

Original source is EIG's quarterly earning report:

During the quarter, the company acquired assets of Verio and Site5. The total cash consideration for these acquisitions is expected to be approximately $36 million.

Total subscribers on (EIG) platform were approximately 4.394 million, including approximately 86,000 subscribers from businesses acquired during the quarter. 

 

[Licensecart]

I wonder who's next, because it's becoming a joke a great company just selling out like Hostgator…. why Ben why?

 

[MannDude]

They're not going to stop buying brands anytime soon and people aren't going to stop selling either. EIG pays more than what brands are generally worth.

Love them or hate them, all of you would love to be the CEO of EIG and you know it. I don't particularly have strong feelings one way or another when it comes to EIG, it's just business as usual.

 

[Tyler]

Love them or hate them, all of you would love to be the CEO of EIG and you know it. 

Mann, with all du(d)e respect, I think this is a sweeping generalization. Hating EIG might be in style, but I hate bureaucracy, and that comes with being the head of a huge company. And aren't they losing money (looked at a report from last quarter)? Wouldn't want to take heat from their investors.

Personally I quite like small businesses and small business values, and I think there is a lot to be said for the smaller businesses and their owners.

 

[DomainBop]

Mann, with all du(d)e respect, I think this is a sweeping generalization. Hating EIG might be in style, but I hate bureaucracy, and that comes with being the head of a huge company.

The people running Verio's retail webhosting business will have less bureaucracy to deal with now that the brand has been acquired by a much smaller company (old parent NTT $84.2 billion revenues, new parent EIG $630 million).

Love them or hate them, all of you would love to be the CEO of EIG and you know it.

Absolutely no desire to run a large publicly traded corporation...

Footnote to this deal: the original Verio probably pioneered the rollup acquisition business model EIG uses.  Verio acquired over 200 ISP brands back in the late '90's (incomplete list of acquisitions here https://en.wikipedia.org/wiki/Verio)

 

[MikeA]

Never thought Site5 would have sold to EIG. Seeing how the owner of Site5 talks on WHT in the past, he never struck me as one to sell off his business. Wonder if they'll keep all of the same employees?

 

[Hsin]

Never thought Site5 would have sold to EIG. Seeing how the owner of Site5 talks on WHT in the past, he never struck me as one to sell off his business. Wonder if they'll keep all of the same employees?

From what I understand

1. He will be involved for the immediate future(he says at least the next 1 to 2 years...after that who knows)

2. I believe they are keeping the same staff

I had a  small orange, an EIG host, and I was a bit let down by them so this does sadden me as a customer to hear about SIte5 going to EIG. I just hope they wont be ruined like many others were.

 

[joepie91]

Well... can't say Site5 wouldn't fit into the family.

 

[Hsin]

The circlejerk that is WHT is up in arms about this. LOL.

 

[WSWD]

Never thought Site5 would have sold to EIG. Seeing how the owner of Site5 talks on WHT in the past, he never struck me as one to sell off his business. Wonder if they'll keep all of the same employees?

They never keep the same employees.  They only keep them temporarily (1-2 years at most) and then they're replaced with the outsourced EIG support.  You can see this with every single other acquisition EIG has done.  Nobody will notice any changes for a while, and everything will be as normal, and then the support staff will change, and the migration to the EIG datacenter in Provo will happen, and that's when the major clusterfuck begins.  There's no need for speculation.  All you have to do is look at the track record and history of their acquisitions.  Why would this one be any different?

 

[QuadraNet_Adam]

Very interesting! Let's see how things turn out for Site5.

 

[DomainBop]

Seeing how the owner of Site5 talks on WHT in the past, he never struck me as one to sell off his business. 

His LinkedIn profile shows he has sold off businesses he started or acquired several times in the past 15 years...

 

[Francisco]

They're not going to stop buying brands anytime soon and people aren't going to stop selling either. EIG pays more than what brands are generally worth.

Love them or hate them, all of you would love to be the CEO of EIG and you know it. I don't particularly have strong feelings one way or another when it comes to EIG, it's just business as usual.

A well known provider was at hostingcon a week or two ago and told me that there was 'lots of brands' shopping for buyers, many well known.

This won't be the last for EIG, I wouldn't be surprised to see a few LE brands show up in their grasps soon.

Francisco

 

[OSTKCabal]

There goes the neighborhood! I always liked Site5. They weren't perfect, but got the job competently done with above-average support. I wish I could say "I wonder what will happen with Site5"... we all already know. Fine for a year or two, then it all goes downhill fast.

 

[Hsin]

They're not going to stop buying brands anytime soon and people aren't going to stop selling either. EIG pays more than what brands are generally worth.

Love them or hate them, all of you would love to be the CEO of EIG and you know it. I don't particularly have strong feelings one way or another when it comes to EIG, it's just business as usual.

A well known provider was at hostingcon a week or two ago and told me that there was 'lots of brands' shopping for buyers, many well known.

This won't be the last for EIG, I wouldn't be surprised to see a few LE brands show up in their grasps soon.

Francisco

BuyVm won't be next will they

 

[Hxxx]

I like how all these people over WHT start to cry everytime a business get sold. 

1- There is a huge bs* movement in WHT. Generalization like all EIG companies suck, GoDaddy Suck!  any big company suck, simply wrong. IMO if they sucked this much none would do money. People doing such comments are missing the point. Not every customer need huge resources, not every customer need high availability and not every customer have a service with built in OCD checking their website 24/7 to see how many tiny minutes the service is down.

2- People like to sign up to known companies, big enough that wont disappear over night.

Is always the same routine. Same people talking trash, same replies, same generalizations. Then you have a few spammers in each of theese threads, sig spamming, you know, getting the most of that corporate tag, with the usual reply" Good luck" , "cant wait to see how this turn out" , etc etc.

Is so disgusting when one company or many wannabes start to trash talk about another while sig spamming.

Then when you head over VPSBoard and see people saying:

"I wonder who's next, because it's becoming a joke a great company just selling out like Hostgator…. why Ben why?"

^ Did i fucking read that? 

Is a business. Businesses get sold everyday. Is normal. Is normal. People want profit, a way out. Not everyone want to be stuck for the rest of their life.

----

Now , this was announced how much time ago? 2 days? 1 day? I already see spam threads, as predicted, complaining about how Arvixe ruined their "business". Then you see the usual reply from the usual hostgator / EIG hater in WHT saying: Avixe got sold, get a better host.

 

[OSTKCabal]

But it's not a lie, it's not generalized, and it's certainly not false. Throughout the history of EIG buyouts, the quality of the company being bought out has always gone down. The customer is left disappointed because they no longer get the same quality of service that they came to expect from that host. It's that simple - quality goes down from what it was. It doesn't matter if the customer doesn't NEED it, it doesn't matter that the customer doesn't WANT high availability, the simple fact is that the customer was already GETTING the high-quality service, and will be expected to pay the same amount of money when that level of quality goes down. Not to mention that they're stuck in for X amount of months.

 

[QHoster.com]

Since private equity firms bought Endurance in 2011 for almost $1B they can spend may be almost unlimited amount of cash buying hosting brands, the problem is they need only big (multi-million revenue/year) ones.