Site5 Sales to EIG

[kabe]

My husband was talking to a developer friend of ours this afternoon and he told him that Site5 had sold out to EIG.

Our friend told him that most all of his sites were hosted with Site5 and that he was getting ready to move all of them to another host which I'm sure is a lot. He has enough of them that he's asked for our help which we will do.

Money talks I suppose.

 

[easyhostmedia]

My husband was talking to a developer friend of ours this afternoon and he told him that Site5 had sold out to EIG.

Our friend told him that most all of his sites were hosted with Site5 and that he was getting ready to move all of them to another host which I'm sure is a lot. He has enough of them that he's asked for our help which we will do.

Money talks I suppose.

http://globenewswire.com/news-relea...roup-Reports-2015-Second-Quarter-Results.html

During the quarter, the company acquired assets of Verio and Site5. The total cash consideration for these acquisitions is expected to be approximately $36 million.

 

[Rado_Ch]

Yeah, the discussion is already going around WHT. Site5's CEO also dropped by there and passionately claims that not only money was the reason, but he genuinely thinks that his clients will be in better hands with EIG. As funny as that sounds, you can't really blame the guy. Many people are in the business to make money and such a huge offer will probably be turned down by just a few. Site5 and EIG are still in this together as the old staff is still in place so he HAS to give political responses and ensuring everyone that all was "for the best".

Pity about the clients though, they will be the only ones that suffer from this...

 

[MrRapidHost]

Here we go another hosting company will be ruined by EIG.

 

[HostColor]

Site5's CEO also dropped by there and passionately claims that not only money was the reason, but he genuinely thinks that his clients will be in better hands with EIG.

One might have his reasons to say so. They might have paid well or the company might come to a certain stage both as organization and financially that it would be better off under the new owners.

Speaking about this fund that owns a lot of web hosts, I'd say that most outhouse were aggressive overseers even before they got bought.

 

[MightWeb-Marcus]

The fun thing is that this'd be a perfect opportunity for EIG to acquire a working business and better their own reputation by letting it run its ship, and make whatever minor costsaving adjustments they would need to get a slow return on their investment. Instead, they decide to crash the business quickly by heavy cuts for a quicker return.

It's a shame, but then again, it was not a shocker. Site5 has gained great brand recognition, and EIG has only acquired companies that have that.

 

[Mera Hosting]

Wishing good luck to site5 and their members, begin owned by EIG doesn't necessary mean they're going to become bad.

The staff of site5 will probably still work there.

 

[RDOServers]

"for the best".

for who......

 

[Rado_Ch]

for who......

The brackets should give out the irony pretty clear

And Marcus, EIG is a very interesting phenomenon so there are at least 3 things hidden for every 1 thing shown. Straightforward, logical conclusions are useless here, as possibly none of us have any real idea of the managerial logic behind such big corps. I, for one, believe the stock market has a lot to do with it. Constant huge acquisitions while practically working at a loss, the same procedure followed for every acquired brand even though mistakes are very clear, shady practices...there are really many things to consider.

This will at one point inevitably change the whole industry, but until then, instead of worrying about it, one should focus on their own services and how to tackle future trends. :rolleyes2

 

[nexxterra]

First, EIG generally leaves the staff structure and even the offices etc of each company in tact, so if there is a decline is is generally due to the existing company not doing what they used to.
In some cases EIG moves company servers to their infrastructure... this is where most of their problems come from.
Secondly, when a company is listed as a publicly traded company, its obligations are NO longer to the customers, but to the shareholders. This is not just what happens, but it is the law.

 

[bwbbwb]

Yeah, the discussion is already going around WHT. Site5's CEO also dropped by there and passionately claims that not only money was the reason, but he genuinely thinks that his clients will be in better hands with EIG. As funny as that sounds, you can't really blame the guy. Many people are in the business to make money and such a huge offer will probably be turned down by just a few. Site5 and EIG are still in this together as the old staff is still in place so he HAS to give political responses and ensuring everyone that all was "for the best".

Pity about the clients though, they will be the only ones that suffer from this...

I never said that at WHT , please read the posts again and stop reading your own agenda in it.

I said that I would never have sold if I didn't think that HostGator/EIG will be a fantastic home for our clients, and long term provide better services then we could on our own. There are a lot of perks to being a billion dollar company. Please read my entire post.

The money was def not the primary reason we sold, but that is def a factor.

We've got a long history of providing great hosting and fantastic customer service, the community knows that, we wouldn't have sold if the new owners wouldn't provide the same or better.
Thanks, Ben

 

[Collabora]

I never said that at WHT , please read the posts again and stop reading your own agenda in it.

I said that I would never have sold if I didn't think that HostGator/EIG will be a fantastic home for our clients, and long term provide better services then we could on our own. There are a lot of perks to being a billion dollar company. Please read my entire post.

The money was def not the primary reason we sold, but that is def a factor.

We've got a long history of providing great hosting and fantastic customer service, the community knows that, we wouldn't have sold if the new owners wouldn't provide the same or better.
Thanks, Ben

Congratualtions! The anti-EIG agenda is alive and well among the Harvard Business Grads and Wall Street Lawyers that hang out in hosting forums.

Prediction: a Site5 customer will complain about a slow site and the "experts" will blame it on EIG instead of a WP plugin that would have got mentioned if there was no sale (while the ink is still wet)

 

[Rado_Ch]

I never said that at WHT , please read the posts again and stop reading your own agenda in it.

I said that I would never have sold if I didn't think that HostGator/EIG will be a fantastic home for our clients, and long term provide better services then we could on our own. There are a lot of perks to being a billion dollar company. Please read my entire post.

The money was def not the primary reason we sold, but that is def a factor.

We've got a long history of providing great hosting and fantastic customer service, the community knows that, we wouldn't have sold if the new owners wouldn't provide the same or better.
Thanks, Ben

I don't really have an agenda in this Ben, sorry if I misunderstood your posts in WHT but I don't really see a huge difference. I did mention your view on the acquisition and you just confirm it - that the move was with the primary reason of providing a better home for your clients. Nothing more, nothing less. Yeah, I do have my reserves about the whole story behind it but I am not in your shoes so its not really my place to question your motives. At the end of the day I am not some Anti-EIG-Evangelist, I do see some differences in the process their acquisitions undergo, but in the long-term they seem to follow one and the same strategy. This is why I can only wish you future luck and hopefully you will get exactly what you bargained for - better service for the clients you so passionately served for years (and some good money in the bank) :rolleyes2

 

[bwbbwb]

I don't really have an agenda in this Ben, sorry if I misunderstood your posts in WHT but I don't really see a huge difference. I did mention your view on the acquisition and you just confirm it - that the move was with the primary reason of providing a better home for your clients. Nothing more, nothing less. Yeah, I do have my reserves about the whole story behind it but I am not in your shoes so its not really my place to question your motives. At the end of the day I am not some Anti-EIG-Evangelist, I do see some differences in the process their acquisitions undergo, but in the long-term they seem to follow one and the same strategy. This is why I can only wish you future luck and hopefully you will get exactly what you bargained for - better service for the clients you so passionately served for years (and some good money in the bank) :rolleyes2

It is like any big decision, there isn't any one reason you do it. My business partner and I had a combination of reasons but one of the largest factors in making our decision was knowing that our customers will be well taken care of long term.

Do you buy a house for one single reason? Or more that it is going to be a good change for your family, it makes financial sense, it is time to move out of an apartment, and you want a dog/cat?

Do you change jobs for one single reason? Or is it a factor of better pay, better opportunity to be challenged and grow, less stress, shorter commute, better perks?

Just wanted pointing out that it is never as simple as "x".

Thanks, Ben

 

[Licensecart]

It is like any big decision, there isn't any one reason you do it. My business partner and I had a combination of reasons but one of the largest factors in making our decision was knowing that our customers will be well taken care of long term.

But there's plenty of other big companies you could have sold to or another bunch of investors other-than EIG, I'm pretty sure any other established company would have jumped off their seats to get a good reputation company as yours.

 

[Rado_Ch]

But there's plenty of other big companies you could have sold to or another bunch of investors other-than EIG, I'm pretty sure any other established company would have jumped off their seats to get a good reputation company as yours.

I have my doubts it would've been so easy knowing the scale of the acquired company. There aren't that many businesses (outside of EIG) with enough financial backing and infrastructure to just "add" another company with the magnitude of Site5 under their hat. Further more you cannot just announce you are "for sale" as that will probably cause a lot of people leaving even before the actual acquisition. So from that prospective its not like EIG was chosen from a pool of other options (I think), just the right offer at the right time. :rolleyes2

 

[wsac]

What hosting company is next? every month i see they buy more company