Shares of both Demand Media (NYSE: DMD) and Tucows (TCX) had nice gains in the stock market on Friday following on the heals of the pending sale of Godaddy.com for up to $2.5 Billion which is expected to be announced officially on Tuesday.
As we reported in our story about the possible sale of Godaddy.com earlier today, Demand which had previously been seen as some as overvalued at a market cap of just over $1 Billion may now seem cheap as they own the world’s 2nd largest registrar, Enom in addition to one of the most visited web networks, eHow.
Shares of Demand rose almost 9% in trading on Friday closing at $14.60 the high for the day giving it a market cap of $1.2 Billion.
Also benefiting from today’s Godaddy buyout rumors was Tucows.com, which is the world’s third largest registrar which was up over 7% giving it still ridiculously low (IMHO) market cap of just $43 million.
This Felix Salmon post on Reuters today makes me very nervous about the future of GoDaddy.
http://blogs.reuters.com/felix-salmon/2011/06/24/upgrading-skype-and-silver-lake-to-evil
I hope godaddy maintains it’s incredible customer service. Yes, the registration process is a bit cluttered and obnoxious and the interface isn’t great either but the customer service is second to none and to me that is paramount…that and lower prices…which they also have. I’ve only tried a couple other Canadian registrars and they were terrible.
@MHB
Honestly, I had been wondering but as I was typing that comment I realized 🙂 Many will lose a lot of money and others will make a lot of money. I think you will be in the later crowd that makes a lot of money. Doesn’t even matter if the whole concept of new tlds even works out in the long run or not. Just would be nice if they did so you could continue doing the same thing over and over again.
And Tucows share price has since doubled since January.