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GoDaddy Files For $100 Million IPO

Posted by ryuzaki0 on from the if-at-first-you-don't-succeed dept.

mpicpp (3454017) writes with news that GoDaddy has filed to make an initial public offering "This is the second time GoDaddy has tried to go public. It went this route back in 2006, but then backed out when it didn't get the pricing it wanted." The SEC Filing indicates that they are not in the greatest financial condition. Quoting CNN: "GoDaddy hasn't made a profit since 2009. The company lost $279 million in 2012. It bled another $200 million last year. This year doesn't look much better, with another $51 million lost in the first quarter." Founder Bob Parsons, currently executive chairman, will be stepping down but remaining on the board of directors.

6 of 110 comments (clear)

  1. Another bubble by rodrigoandrade · · Score: 5, Insightful

    This is going to make top Go Daddy execs millionaires, and every other stockholder gets screwed after the execs flip and the stock tumbles down in the months following said IPO.

    Protip: NEVER enter an IPO, no matter how awesome you think the company is. Wait and see how the stock performs over an extended period.

  2. Re:sounds dire by Impy+the+Impiuos+Imp · · Score: 5, Funny

    I went to godaddy.com to see what the heck they do anyway, but I just got a spam page saying godaddy.com was up for sale and did I like to buy it?

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  3. Not profitable by sjbe · · Score: 5, Insightful

    The SEC Filing indicates that they are not in the greatest financial condition.

    Shocking. They sell an aggressively priced commodity product and spend a ton on stupid sexist advertising to people who aren't their customers. Their customer service sucks and their website (last I checked) is a hot mess. While I haven't read their prospectus I don't really see them ever being more than modestly profitable at best. They seem to be taking an Amazon business model - growing now and worrying about profits down the road. But unlike Amazon the economic barriers to competition are quite a bit lower.

  4. How by Anonymous Coward · · Score: 5, Interesting

    How the fuck do you blow $200+ million a year being a registrar? Where does the money go? It can't possibly cost that much unless they are doing something very, very wrong. Where is the cash going?

    SOPA support?

  5. Not their core competency by OzPeter · · Score: 5, Interesting

    GoDaddy should stick to their core competency of strippers, pole dancing and parties(*) rather than this internet thing.

    * Well thats the impression I get from their ads.

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  6. Not hard to blow a lot of cash by sjbe · · Score: 5, Interesting

    How the fuck do you blow $200+ million a year being a registrar?

    By buying pointless Super Bowl ads and selling your product for less than it actually costs to provide. It's not hard to lose a lot of money really fast if you sell a commodity product people want for less than it actually costs to provide it. I had a teacher once point out how easy it is to generate sales. Just sell a $2 bill for $1. You'll have all the revenue you can handle but you'll be out of business faster than you can say "Chapter 7 bankruptcy".

    Where does the money go?

    Go dig up the prospectus and it will tell you. I can't be bothered but my guess would be some combination of advertising, infrastructure and management compensation. Possibly debt service too if they went that route.