GoDaddy sells PlusServer for $456 million

[domainking131]

GoDaddy has entered into an agreement to sell PlusServer, a business it picked up in the Host Europe Group acquisition, for €397 million (USD $456 million). Funds advised by BC Partners are buying the business.

PlusServer is a managed hosting service that doesn’t fit into GoDaddy’s typical market segment of very small businesses. It announced that it planned to explore a sale of the business back when it struck the deal to acquire Host Europe Group (HEG).

To put the purchase price in perspective, GoDaddy paid $1.8 billion for HEG.

Source

 

[Domainant]

I know GoDaddy has wanted to divest their hosting business for some time now, so I'm not surprised they sold it. But, I'm surprised someone paid $456 million for it. Is it really worth that much?

 

[Connected]

A product is only worth what a buyer is willing to spend. Apparently, it's worth half a billion to those people.

I find it ironic though that GoDaddy got such a large amount by focusing on the small business aspect of their business.

 

[Domainant]

A product is only worth what a buyer is willing to spend. .

Not to me because I always consider the long term view of investments. So, it's not just what the buyer is willing to pay today, or tomorrow, but next month, next year, a decade from now. But, the internet is always changing at a fast pace so I can see why others take the short view instead. Both viewpoints have made and lost money.