• GoDaddy Sold for $2.25 Billion By Three Private Equity Firms

    // Gradly // Acquisition, blog, News, Rants & Raves No Responses

    GoDaddy, the world’s largest domain registrar, has been sold to three private equity firms in a deal valued at $2.25 billion, the company announced late Friday.

    Private equity firms KKR & Co., Silver Lake Partners and Technology Crossover Ventures sealed the deal, where they agreed to take on GoDaddy’s debt, which the amounts are roughly half the value of the deal.

    “We are partnering with KKR, Silver Lake and TCV because of their technology expertise, their understanding of web-based businesses and because their values align with ours,” GoDaddy Chief Executive and founder Bob Parsons .

    Company founder and CEO Bob Parsons predicted further growth of GoDaddy under its new ownership. He said to the Los Angeles Times, “What these guys see is a company with a lot more potential internationally and more potential to make partnerships and acquisitions. They’ll help us finance and they’ll help us recruit talent.”

    GoDaddy, has seen significant growth over the past three years, with sales rising by 25% to $947 million from 2009 to 2010. The company projected growth for 2011 to continue that trend, quoting a figure of $1.1 billion for the year.

    The New York Times, in an article quotes Parsons as saying “This isn’t a sale. It’s a partnership that’s reinvesting in Go Daddy.” The article added that Parsons “will become executive chairman of the company after the sale closes, and he will remain a large stakeholder,” but it’s still unclear whether Parsons will retain a controlling interest in the company. GoDaddy’s own press release doesn’t address that crucial fact, either. We’ve contacted Parsons’ office for verification.

    A spokesperson from the Go Daddy Group, Inc. responded to mashable, stating that, “Mr. Parsons will continue to be the largest single shareholder, even after the agreement is finalized. This does not mean he has 51% — it means, as an individual, he would have as much ownership as any one entity.”

  • Microsoft and Nokia to Begin Acquisition Talks Next Week

    // Gradly // Acquisition, blog, Featured, Microsoft, News, Nokia, Rants & Raves, Rumors No Responses

    Nokia is set to begin discussing the possibility of an acquisition by Microsoft, according to industry insider Eldar Murtazin. The blogger, who has a proven track record of disseminating accurate intel, says negotiations will begin next week and the results will not immediately be made public. If the two giants do work out a sale, however, it could close before the end of 2011. It seems that the deal of selling Nokia to Microsoft is now on the table. Exactly one week ago Microsoft has acquired the Internet Telephony Skype for $8.5 Billion. Is Nokia coming the next?!

    Today Eldar Murtazin had this quip on his blog:

    Next week Nokia will start the negotiations about the sale of it’s phone unit to Microsoft. For now the results of the negotiations won’t be public, but the deal might close before the end of 2011. Both companies are in a big hurry.

    If this came from any other source, I probably would have dismissed it. But coming from a guy who broke the news about the first Nokia Windows Phone deal, weeks before it happened. I’m starting to wonder if this is really the beginning of the end of Nokia?

    Nokia PR team stepped in on this issue here in comments and on Twitter with a sort of denial:

    We normally don’t comment on rumours as you know, but we have to say that Eldar’s rumours are obviously getting less accurate with every passing moment.

    Eldar Murtazin went on to say:

    While casting some doubts – it actually does not sound like and outright denial. Something along the lines of “We are not in any negotiations about the sale of the company and do not have any plans to enter into one” – would have sounded more convincing. But I’m not sure if even that would help much at this point.

    All it takes, is a look back about how the original story about Nokia Windows phone deal unfolded, and how surprised people at all levels below the very top were. I bet that in January very few people at Nokia were aware that dropping Symbian and Meego, and going Windows Phone 100% was even an option.

  • Microsoft Has Acquired Skype For $8.5 Billions

    // Gradly // Acquisition, blog, Featured, Microsoft, News 2 Responses

    As reported early today, Microsoft has officially announced on Tuesday the acquisition of Skype.

    The software giant announced the deal on Tuesday, valued at $8.5 billion cash. Both Skype and Microsoft’s board of directors have approved the deal and Microsoft will create a new business division especially for Skype. Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Ballmer.

    Microsoft and Skype today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft and Skype.

    The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.

    With 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, Skype has been a pioneer in creating rich, meaningful connections among friends, families and business colleagues globally. Microsoft has a long-standing focus and investment in real-time communications across its various platforms, including Lync (which saw 30 percent revenue growth in Q3), Outlook, Messenger, Hotmail and Xbox LIVE.

    Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.

    [Image courtesy winrumors]

  • Microsoft To Acquire Skype For $8.5 Billion

    // Gradly // Acquisition, blog, Featured, Microsoft, News, Rants & Raves 1 Response

    Following The WSJ report tonight which shows Microsoft, in what would be its most aggressive acquisition in the digital space, was getting closer on buying the online telephony and video communications giant Skype for $8.5 billion all in with an assumption of the company’s debt–$686 million.

    Kara of AllThingsD has confirmed the deal is actually done and will be announced early tomorrow morning.

    The purchase is a bold move for the software giant and its biggest acquisition in more than three decades.

    The big price will give Microsoft–which has struggled in its online efforts and has lost billions of dollars for its work–a big brand name on the Web.

    With Skype, which has been aggressively expanding, Microsoft will continue to lose money in its Internet efforts. Skype lost $7 million on revenue of $860 million. Operating profits, which Skype highlighted, were $264 million.

    But, sources said, the concept is bigger than just money, including getting access to Skype’s 663 million registered users.

    Skype has had a big-company owner before–eBay Inc. paid $2.6 billion in cash and stock for it in 2005, as a way for the auction site’s buyers and sellers to communicate.

    Facebook and Nokia seemed to be interested in the acquisition too:

    Other suitors have looked at Skype, including Google, although acquisition interest by Facebook was very much overblown, said several sources.

    Interestingly, Microsoft’s new smartphone partner Nokia also held meetings with Skype’s CEO Tony Bates, a former Cisco exec who arrived at the company relatively recently.

    Update:

    The deal confirmed by Microsoft