Godaddy retracts IPO

[ice871]

Right choice.

[zune318]

hopefully the issues at ME wont last for long, its effecting us all...

[ice871]

It's also a horrible time to make an IPO-- not only for GoDaddy but any company.

[zune318]

http://www.bobparsons.com/WhyIPOPulled.html

The other missing factor is the lawsuit they are facing from WEB.com, formerly Interland.

It is difficult to go public under this type of lawsuit.

His explanation of the accounting for domains is really interesting and helpful. Their "loss" is really a function of the accounting for domains.

Franc

what lawsuit with web.com?

[ice871]

His explanation of the accounting for domains is really interesting and helpful. Their "loss" is really a function of the accounting for domains. This is not only true for domains, the same thing applies to web hosting when customers prepay for 3, 6 or 12 months, etc. or for all prepaid services. We had a lot of discussions on our side (iWeb) with verificators with the way sales are accounted for domains because for web hosting you have in fact a service to deliver for the prepaid months, but for domains? There is no real service to deliver once the sale is made so I can understand that fact changes a lot of how you perceive GoDaddy but it is also true for us or for any other web hosting company that has defered revenues on its statements. There's a risk associated with the fact that it's defered revenues and investors must know it.

With this and the market conditions GoDaddy probably had to set a price for their share lower than what they expected to get their 200 millions that significated more dillution and that must be the main reason why they retracted.

Regards,

[zune318]

what lawsuit with web.com?

A pure guess on this but since web.com owns patents around a number of hosting items as simple as a web browser and a control panel, I am guessing that is what is being referred to.

As a side note, you can see on web.com's press page that Hostopia recently came to an agreement with them on not being sued under these two patents and did that after the IPO was announced so I am guessing that this could have been one of the silent straws that broke Godaddy's back...

[joe39233]

Web.com Sues GoDaddy

June 22, 2006 -- (WEB HOST INDUSTRY REVIEW) -- Domain name registrar Web.com (web.com) announced this week it filed a patent infringement lawsuit Monday against domain registrar and Web hosting provider GoDaddy (godaddy.com).

In the lawsuit, Web.com alleges that GoDaddy's Deluxe Hosting Plan infringes on its patent called "Synchronized Server Parameter Database," which enables customers to have remote access to a control panel that is part of the Web hosting service.

Atlanta, Georgia-based Web.com filed the lawsuit against Scottsdale, Arizona-based GoDaddy in the U.S. District Court in Atlanta.

Web.com, formerly Interland, provides solutions for Web sites and web services including do-it-yourself and professional Web site design, Web hosting, e-commerce, Web marketing and email.

[zune318]

how lame, they just want to sue em for anything just because they are #1 registrar that might give Web.com some PR around news sites that wants to talk about #1 registrar news

[joe39233]

how lame, they just want to sue em for anything just because they are #1 registrar that might give Web.com some PR around news sites that wants to talk about #1 registrar news

Or they could be defending a valid patent...and one of the ways to ensure that a patent stays valid is to defend it.

[joe39233]

There are not good times or bad times for an IPO of a company that has great future and a competitive advantage. Investors always will be willing to buy a piece of a company that promises to provide good returns.