Thoughts on the GoDaddy IPO

Domain Name Wire has a recent post about GoDaddy’s Initial Public Offering.

Three things stood out to me:

1. GoDaddy’s growth over the last five years has indeed been incredible. Amazing even.
2. GoDaddy does not make a profit. I always scratch my head when unprofitable businesses want to go public. Will going public make them profitable all of a sudden? I also scratch my head when people are willing to invest in unprofitable companies. What evidence do they have that this company will all of a sudden make a profit?
3. Domain Name Wire writes:

   Last month I wrote about how I believe GoDaddy is violating ICANN’s domain transfer policy by making it difficult to transfer domains away from GoDaddy to its competitors.

   For a variety of reasons, I decided to leave GoDaddy as my registrar last year. It DID take forever to get the domains transferred. It really was eye opening. It also confirmed my decision to leave them. Domain Name Wire is correct on this point.

[tags]domains, godaddy[/tags]