GoDaddy Acquires Media Temple to Run as Separate Business

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GoDaddy announced on Tuesday that it has acquired Media Temple, a web hosting and domain registration provider based in Los Angeles. Financial terms of the deal have not been disclosed.

The acquisition of Media Temple marks GoDaddy’s sixth acquisition in just over a year, but this deal is different in that it will be operated as a separate business.

Media Temple will be staffed by its 225 existing employees who manage 125,000 customers and host more than 1.5 million websites.

Both Media Temple and GoDaddy count small and medium-sized businesses as core of their customer base but Media Temple tends to appeal to a more creative, technically-savvy user than GoDaddy. At HostingCon in June, Media Temple sat down with the WHIR to talk about the updates to its VPS hosting platform and its CloudTech Premium Support offering, updates aimed at users of all technical abilities.

“Though our customers have traditionally been very different, both companies have similar priorities of providing excellent service experiences. However, we also understand and respect the vast differences and needs of our respective customer bases. Hence, Media Temple will continue to run as an independent business and is not being integrated into GoDaddy,” Media Temple CEO Demian Sellfors said in a blog post. “Our customers should not experience any changes to their service levels, pricing, or the expert support we are known for. We’re not moving our servers, and the phone number is not changing. We will remain in Los Angeles and will stay committed to being the most amazing hosting provider possible. In all seriousness, our mission to host great ideas feels like it’s just getting started.”

The deal may help GoDaddy reach new clients – particularly web designers, developers and startups who may have overlooked GoDaddy in the past. For now, operating Media Temple as a separate company is a good move on GoDaddy’s part since some of these customers aren’t thrilled with the acquisition. Many (mt) customers took to Twitter on Tuesday to express their concerns around customer service degradation, with some vowing to switch to another hosting provider all together.



As the hosting industry continues to see more consolidation, it will be interesting to see how smaller web hosts stand to benefit (if at all) from customers turning away from a web host acquired by one of the big hosts like GoDaddy or Endurance International Group. If customers really feel as burned as they purport to on Twitter, then smaller web hosts who make it as easy as possible for customers to migrate sites, and promise (and deliver on) solid customer service, could gain some business if they play their cards right.

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