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HostPapa is taking over ColoCrossing (and the rest of the Deluxe Web Hosting)
edited February 3 in News
Well here it is:
Apparently they will be taking over Colo Crossing and other web hosting businesses that are/were a part of Deluxe.
I wonder if that will have any effect on:
So the biggest CC provider that I can think of is obviously RackNerd, who was likely getting a killer deal on IPs and servers, due to the friendly nudge in the right direction by Biloh. So now when Biloh will likely no longer be "an independent consultant" for CC - what will happen to Rack Nerd? And if the prices for RN go up - what will happen to all those 1yr and 3yr deals?
And with the legal trouble that Dustin is already in - how will that affect the future of RN?
Everytime I see the HostPapa logo I think of Mr. Monopoly
Pretty interesting, especially if they sold all the IP's with it.
Are we going to see a touch more v6 now?
The bad just got even worse.
IP costs will go up for sure. Its likely the only reason they bought it, and the only way they can get some costs back almost instantly.
Either the resellers will adjust to a new pricing after their current deals end, or they will have to find another upstream provider. The new owner doesent care either way, because they can just lease the IPs for higher price and scale back CC operations and physical costs like the amount of machines.
Incoming smell of popcorn... drama!
Can anyone from across the Atlantic provide some basic info/intro on "HostPapa", their operations, market significance/weight, locations, major services?
Oooof. I'm out. GG.
I've never even heard of HostPapa.
I have been known to live under a rock.
My take though is that web hosting doesn't really make Deluxe Corporation money, so they felt more enticed by focusing on different markets and products than spending more time on cloud hosting. This is in line with their overarching strategy to divest themselves from the cloud market (link: https://www.investors.deluxe.com/News/news/news-details/2023/Deluxe-Reports-Fourth-Quarter-and-Full-Year-2022-Results-Provides-Full-Year-2023-Outlook/default.aspx ).
I mean their forecasted EBITDA is like -2% to +2% for 2023 (if I'm reading this right) with an expected change of -1% to +2% in revenue. So it sounds like they're not really growing but rather just hanging, and reading their most recent 10-K filing web hosting services only accounts for a total of 5.5% of their entire revenue (cloud business line is a total of 13%... smallest out of all the other national business lines) so my hypothesis is that they're selling this part of their business to get $$$ for the uncertain economic condition coming up and/or having $$$ available for new acquisitions.
Not too familiar with Hostpapa and they're a privately held company so I don't have much visibility into this. But then again, first time I've heard of them and probably something I'll forget.
I smell a future Deadpool
I've always seen it mentioned on google searches when searching for shared, cpanel or reseller hosting. The papa logo was displayed along with bluehost, hostgator, godaddy ones. But I always thought it was EIG brand. lol.
Yeah I read their wikipedia page but it definitely sounds like it was written by their marketing team (or only written from marketing materials). So... Probably doesn't give the full picture.
Saw an article about this a couple of days ago. I thought they were buying some other small web hosting company also called Deluxe.
They're usually found in those fake Top 10 Shared Hosting reviews/review (affiliate) sites.
They're, probably, thinking about launching their own Cloud product(s).
well, follow the money trail.
And on and on we go
hostpapa sounds like a russian sugar daddy !
I'll see myself out.
Finaly, papa will get that colonoscopy. Blood in a stool was obvious problem for a while.
At least according to the press release linked above:
There's no mention in the press release of CC, nor of VPS/server services, so this acquisition may not be what one might imagine it to be. (At least based on the press release)
never heard of them.
colocrossing IS and WAS dogshit.
guys linkedin screams "globalism" - I can smell the public company and shareholders.
Papa is/was a knock-off godaddy.
According to his post on LI, he seems to think he is getting CC also. So I guess it would include it.
Yeah, I see/saw that, so maybe. (But that's the equivalent of a tweet)
Nevertheless, it's odd that the press release doesn't mention CC, nor have I yet found an independent news piece that says that they're acquiring CC (and thereby the VPS/server services)