Jul 11th, 2012
- " Hello Fellow Gators,
- There have been rumors flying around the web and the office about
- HostGator being sold for many years now. I'd like to address these
- rumors and put many of your fears to rest. I still own 100% of
- HostGator and haven't collected a single penny towards any buyouts at
- this time.
- The latest rumor is the first that actually has some truth behind it.
- I have indeed agreed to sell HostGator to Endurance International Group, which is why you're hearing stories
- about EIG raising financing to purchase us. We are currently under
- contract and if everything goes according to plan, EIG will be
- purchasing HostGator in the next 3-4 weeks. This is the first time in
- HostGator's history that we have ever reached an agreement on the
- terms needed to complete a deal.
- In the last few months, I've spent countless hours getting to know
- EIG's CEO Hari Ravichandran, and I can honestly say that he is one of
- the most trustworthy and knowledgeable people that I've ever met. In
- other deals we've looked at, the potential buyers have only seen
- HostGator as a slot machine and that's not true of Hari. He clearly
- understands that HostGator is the 800 pound gorilla that it is today
- thanks to all of you who provide the legendary support that HostGator is known
- It's only natural for all of you to be apprehensive towards change and
- the fear of possibly losing your job. I can write whatever I want in order to
- cover for EIG, but I would rather let the facts speak for themselves:
- When I first heard about EIG purchasing Bluehost in November 2010, I
- was extremely ecstatic. The first thoughts that came to mind were that
- EIG was going to destroy the company, resulting in one of our biggest
- competitors going the way of the dodo. However, rather than plunder
- and pillage, they've hired and flourished. Bluehost was at 280
- employees when the sale closed and they have 450 today. Their
- management team has stayed the same and the culture has stayed the
- same. Now, the Bluehost culture, employees, and philosophy have taken
- hold to become the new status quo of EIG.
- I'm confident the same will happen once again with the best of
- HostGator culture, ideas, people, and leadership coming together at
- EIG to create a more powerful hosting company than the world has ever
- seen. In fact, I've heard that EIG with HostGator will be even bigger
- than GoDaddy.
- Once this deal is complete, I will continue to own all of the
- HostGator occupied buildings through Oxley Leasing. EIG and I will
- soon have a leasing deal in place that will not only include all of
- the current occupied space leased, but will also expand Austin by
- 30,000 square feet as well as Houston by another 10,000-20,000 square
- feet. Hari has also told me that one of his first acts of business
- will be to do a major renovation of the Houston office. If EIG planned
- on downsizing, they wouldn't be signing such huge expansions in both
- Houston and Austin.
- HostGator will be EIG's largest acquisition to date and with that it's
- going to create countless opportunities for each and every person. Not
- only at HostGator, but also at other EIG brands. I can't stress enough how
- instrumental it will be for EIG to replicate HostGator's strengths
- across all of their brands, and to do that, they will need HostGator
- leaders and know how.
- There are many of you who are going to call me crazy for deciding to
- sell during a time in which HostGator has experienced unprecedented
- growth and success. I'll do my best below to share a few of the many
- reasons behind my decision:
- * I want to travel the world before my wife and I have kids.
- * I've been doing HostGator since I was 18, and I'm looking for a new
- * I'm extremely worried about the financial path our country is headed down.
- * Taxes will be going up significantly in 2013, making it more
- difficult for business owners.
- * I've failed more times than I can count to launch software that
- would allow us to compete as a registrar.
- * We have tried and failed to develop a billing system that has
- automated and can integrate with our key systems such as chat, phone,
- affiliates, and tickets. I think we are finally on the right track,
- but unfortunately I no longer have the patience to wait for it to all
- come together. Thankfully EIG has tackled a lot of these challenges
- * I have practically 100% of my chips in HostGator and if something
- should ever happen to the company, I'd more than likely be bankrupt in
- a matter of a few months.
- I could stick with HostGator for a few more years and turn it into a
- multi-billion dollar business, but I think now is the right time for
- me to move on and to let the company continue to grow and succeed
- under EIG.
- If any of you have any questions, feel free to email me at
- email@example.com and I'll do my best to get them answered. The key
- thing to remember is that this deal isn't complete yet, and if and
- when it completes, Adam Farrar and the rest of management won't be
- going anywhere.
- Brent Oxley
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