You heard us right, all indications point to the world’s largest domain name registrar being on the auction block. The WSJ is reporting that GoDaddy.com has put itself up for sale in an auction that could fetch more than $1 billion, according to their sources.
It also looks like Qatalyst Partners, a firm run by veteran technology banker Frank Quattrone, has been hired to facilitate the sell. Private-equity firms are expected to bid for the company, which currently has more than 43 million domains under management (including this one :) ).
In addition to registering domain names, GoDaddy.com sells a plethora of other services including e-commerce, security and website creation. GoDaddy is privately held but the deal doesn’t seem to be because the company is in any kind of distress, it reportedly posted revenue of somewhere north of 750 million dollars in 2009.
The reason that most people believe that it won’t be hard to sell GoDaddy is because it has the kind of business model through recurring subscriptions for domains and other “add-on” services that provide a consistent and steady cash flow.
My personal experience with GoDaddy as this site used to be hosted there is mixed. I think they do domain management, email and other additional services pretty well, but I am not a fan of their web hosting at all. In the end, when you are that big some people will have good experiences with you and some won’t. I think that their customer service leaves something to be desired, but if I was someone looking for a company that was a solid cash cow then I would definitely be interested.