In February 2020, GoDaddy acquired Uniregistry for $196.9 million. It was one of the largest deals in web hosting history. Also included in the acquisition is the South African startup Over, which mainly deals in social content, as well as Frank Schilling’s domain name portfolio. These acquisitions mean a lot to investors both in terms of finance and opportunities.
When it comes to potential benefits for investors from the aforementioned deal, existing investors will likely see their shares increase in value and new investors will see a greater potential. But, that’s just the tip of the iceberg. Read on to learn about several other benefits that investors may enjoy from the acquisition.
Competition for Expired Domains Will Decrease
For GoDaddy investors, Frank will no longer be a bidding opponent. Hence, you will be able to bid comfortably for expired domains. Frank has also confirmed that there are no plans to rebuild the domain portfolio as of now.
“I’ve already built the best portfolio in the world.”
-Frank Schilling
Hence, the absence of a huge buyer like Frank will have a big impact on the prices. They will likely go down. Also, since Uniregistry is now part of GoDaddy, the expired domain name inventory will effectively expand and pass to GoDaddy.
Less Competition in the Registrar Space
Uniregistry is much smaller in size compared to GoDaddy. However, it will push the latter to improve on its services. This will be partly made possible through the talent that Uniregistry has and its innovations over the years. That being said, it is true that they’re not a competitor anymore. Thus, their work will have less of an impact on pushing GoDaddy towards improvement.
More Affordable Domains
Once Frank Schilling’s inventory will become part of the GoDaddy platform, more domains will be up for sale. More than that, they will likely be more affordable than what Mr. Schilling’s portfolio would’ve sold them for.
Better Talent on the Market
Uniregistry’s employees are all being retained by GoDaddy. This means that the great talent will largely remain at the web hosting site. However, it is inevitable that a few will resign. What this means for other corporations is that great talent will be looking for new positions shortly.
Data
While GoDaddy doesn’t support individual sales like Uniregistry does, the domain appraisals for the former do include sales. Hence, less data will be available for buyers, but GoDaddy will have more data to analyze its domain investors. Hence, investors will technically be getting more for less.
Frank Schilling’s Domain Name Portfolio
For those unaware, Frank Schilling is considered one of the biggest domain name investors in the world. He has built a portfolio of over 375,000 domain names that he started at the beginning of the century. A lot of people dismissed the value of domains after the 2001 dot com crash, but he was wiser. He saw an opportunity to pick up many domains that others had let expire.
With this portfolio and Uniregistry’s sizable inventory, GoDaddy’s total domain name count will swell to 1 million.
This entire acquisition presents a huge opportunity for investors and regular buyers. They will have greater choice on a single platform with more affordable pricing.
Ready to Buy a Domain Name?
GoDaddy is one of the leading domain name registrars, but they are not the cheapest.
If you’re thinking of starting a business or even if you just want to reserve your name in case you want to set up a website in the future, now is a great time to buy that domain name before someone else snatches it from you.
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