Next Big Futures article GoDaddy’s $20 billion takeover of WebHost.com could come as soon as this year.
The acquisition will bring WebHost’s operations into the broader enterprise hosting space.
GoDaddy CEO Mike Roberts confirmed to Bloomberg that the company has “a deal in the works” with a leading provider of managed hosting for large organizations.
GoDaddy already has a deal in place with WebHost, but the company will be able to expand the number of partners to a more broad range of organizations as the deal closes, Roberts said.
The WebHost acquisition comes at a time when more and more organizations are turning to cloud hosting, where they can host their applications and other resources on multiple servers.
GoPad, the parent company of GoDaddy, announced last month that it will acquire Rackspace, which operates the popular Web hosting platform.
Rackspace has been offering its own cloud service, GoPad Hosting, for years, but GoPad will continue to operate as an independent service.
GoPad CEO Michael Schatz said he plans to use the GoPad platform to help organizations move from legacy, managed hosting to cloud services.
He told Bloomberg that “we are really looking to leverage the cloud to accelerate our transformation” and that the move from managed to cloud will provide a “huge competitive advantage.”
In a statement, GoDaddy said it has “an agreement in the making with a top provider of cloud hosting for small and medium-sized organizations.”
The company said that the deal will bring GoDaddy “full cloud capabilities to our customers” and “bring our business in-house.”
The company’s CEO said in a statement that the combined company “will offer a seamless and reliable cloud service with the ability to scale as well.”