GoDadday, the domain registry giant has acquired yet another firm, Los Angeles based Media Temple. GoDadday has been on a roll, this being its sixth buyout in the last 15 months. We have earlier reviewed Media temple, and it’s one of the highly recognized webhosting company.
Media Template, a well renowned, privately held, web hosting company began its operations back in 1998 with its target on premium web services. Since its inception, the company has seen tremendous growth and has built a sustainable brand and insurmountable reputation among web professionals. The company has on various occasions been recognized as the fastest growing company in North America in provision of web hosting and cloud services. By acquiring Media Template, GoDaddy intends to reach out to premium online services clientele who primary include web designers and developers.
Russ Reeder, Media Temple president stated the drive to sell the company as the underlying great potential it has and the need to access the global market. GoDaddy is argued to comfortably offer the resources to reach these goals. Co-founder, Demian Sellfors expressed the acquisition as an accomplished long term objective of the enterprise. According to him, the founders are mere entrepreneurs and have remained committed to that vision.
In terms of reputation, Media Template has sustained an unmatched standing compared to GoDaddy’s and as true as it may be; GoDaddy CEO Blake Irving admitted “We can learn a lot from them, whether it’s in infrastructure or customer acquisition. There is a ton of things that we can learn on the developer and marketing sides.” Media Temple is expected to offer GoDaddy the opportunity to sharpen expertise in providing more sophisticated offerings web hosting services, and will go the extra mile to polish its image for future clients. Media Template’s products and services include; different levels of web hosting services API management, SSL services and CDN services. These products are likely to rake in higher margins than most of GoDaddy’s existing basic products.
GoDaddy’s plans for their new acquisition have taken a different approach from the previously acquired firms. Media Template shall be run as a standalone entity unlike the usual culture of integration into GoDaddy’s operations. The CEO Irving during a briefing stated “We can continue and invest in and accelerate its growth without integrating. We think it’s a much smarter move for Media Temple to let them remain as their own business.” The business structure including the human resources shall remain intact with an anticipated huge injection of financial resources into its operations. Blake Irving and Russ Reeder did not reveal the figures on the final total sum for the acquisition. It is however everyone’s guess that Media Temple could not have come cheap, especially being a company of favorable status and has been steadily profitable in over a decade, serves more than 125,000 brands including prestigious clients such as Wall Street Journal, IBM, Toyota, Samsung, Adidas and Starbucks. Moreso, in 2012, the company managed to raise just over $15 million dollars in venture financing.
GoDaddy is on the track to global dominance with its services available across the continents in over 30 different languages. Its acquisition of online services firms in the recent past has only served to enrich available products and services on its ever growing catalogue. Currently, the company serves more than 12 million customers with an employee base of 4,000.
According to me, it’s a good move by Mediatemple, as with Godaddy global presence, they will grow really fast. More over, Godaddy is doing right thing by not changing the internal staff of Media temple.
If you are an existing Media temple customer, I would like to know how you are feeling about Media temple buyout by Godaddy? Was it a good move by Media temple to sale itself?