HostGator Sold to EIG For $225 million USD

Here is a big news for all Hostgator customers, (Even ShoutMeLoud is hosted on Hostgator). Hostgator is sold for $225 million USD to Endurance International Group.

Hostgator Sold To EIG

According to reports, Mr. Hari Ravichandran, CEO of EIG, offerd $225 million to Hostgator CEO, Brent Oxley and he accepted. This news came out as a shock for Hostgator users and people are already discussing about the same in Webhosting forum.

Some background about Endurance International Group:

EIG is a business group, which has acquired many popular Web-hosting company and domain registrar. If you are not aware of the fact, Fatcow, iPage, Bluehost, VPSLInk and many more companies are part of this group.  Since, Hostgator is one of the top Webhosting company, with this acquisition EIG will get get hold in Webhosting market.

You can learn more about EIG and list of Web hosting companies owned by them here. In the complete list of hosting companies, only Bluehost is considered as one of the top hosting, else all others are budding hosting companies. With Host gator in the list of companies they own, they already created a lot of buzz in the hosting market. You can see what others are feeling about this on Webhosting forum discussion post.

What’s in for Hostgator customers?

There is good and bad news as with great financial background of EIG, We can expect better service & support from Hostgator. As it is, they are known for their excellent customer support. Bad news is, we are not sure about the future of our sites on Hostgator. As, this acquisition of Hostgator means, moving our data center to different location, and if you are into Web hosting, you might know that there are chances of losing data (Websites) at the time of  data center migration.

Now, as confirmed in an Email, Brent Oxley mentioned that this whole process will take 3-4 weeks and once Hostgator is completely sold to EIG, they will sign the lease agreement for Houston and Texas data center. And, if everything goes planned, they will be expanding the infrastructure. The only sad part is, CEO Brent will not be a part of the company once Hostgator is sold to EIG.

Well, I’m still uncertain if this is a good or bad news, as the only scary part is is data center migration, we need to be ready with all the necessary backup. I suggest you to set up daily backup of your site, as if Hostgator data center moves after the complete deal agreement is done, it may be disaster for many. Better safe than sorry. I’m using managewp to take backup on my AmazonS3 account. Also, hostgator offers cPanel backup, you can use that too.

Also, if you are renewing your hosting package or buying a new package from Hostgator, I suggest to stick to monthly bill payment until everything is done or opt for Bluehost (Discount coupon) which is one of the best alternative to hostgator for now.  I will be moving my site to a VPS server in coming week, as I have read many horror stories related to data center migration.  I will keep updating you about the latest news on Hostgator and EIG, you can subscribe to my Email newsletter for quick updates.

Do let us know, What steps are you going to take? Will you be moving your site to any other host or will you be simply taking a daily backup of your site to avoid any disaster situation.

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Article By
Harsh Agrawal is a blog scientist and a passionate blogger. He is blogging since 2008 & writes about Blogging, SEO, Make money online & tech. His blog, ShoutMeLoud receives 1 million Pageviews/month and have over 700K subscribers.


COMMENTs ( 42 )

  1. says

    Worst experience ever. I’ve been with them for 5+ years. Had a TOS issue due to mysql issue. Took my site down and without notice, stated they no longer do Malwear checks and seemed completely disinterested in helping me get my site back up. Couldn’t even whitelist me correctly so I could check out to see if SQL injection or wtf happened.

    Down 18 hours as of now.

    I’ve never heard NO SO MUCH from CUSTOMER SERVICE.

    Used to love them. Now, f#@k them. But, where do you go. So many others suck too. I’m just going to use my Azure account I guess.

    Hostgator is indeed dead.

    The Frame Room

  2. says

    I got a vps with them, after a couple of weeks of normal usage i got bandwidth capped to a halt, i couldn’t believe they did this (for a $75/month vps…) until i found out it was sold and not longer was the hostgator i knew.

    Hostgator is dead.

  3. says

    hostgator is one of the MOST pathetic unprofessional organisations with their India team full of duds who don’t know a thing. Horrible experiences. they have even lost my mail data of last 6 months now and have no resolution!

  4. JR says

    Hostgator is the worst host on the web now, support tickets unanswered for 7 days, and one was for suspected Malware on a site and the phone support is pathetic.

    Slow servers, and even their own billing interface is slower than a turtle, Brent cared about this customers, these people do not!

    I just closed 3 accounts I had with them for 5 years, worst experience ever!!!

  5. Shishir says

    Hostgator is having a pathetic service. Their windows server crashed and till now (even after 8 days) they are unable to make the server up.. Worst they don’t give us the backup.

  6. Hasan says

    I have been using HostGator for more than 3 years and they remained awesome during that tenure. Still I am HostGator user, haven’t experienced anything worst so far. I hope the new company which has acquired HostGator will maintain the quality service in future.

  7. Tanvir says

    EIG ripped HG their support and service all gone beyond nightmare, HG customers are leaving one by one. If you see the web-hosting forums you can see many customers complaining , searching for new host. i was one of them. now i am with another good brand but scared if they also sell out their business to EIG. In hosting industry EIG means nightmare.

  8. Bruce Simmons says

    Mr. Ross,
    I too have had a site on HG for several years. And within a few weeks of EIG buying them, I got shut down for using too many resources. This then happened every 6 weeks or so for a few months.

    Their reasoning why?

    “WordPress starts becoming inefficient at handling the number of posts somewhere between 1500 and 2500 posts, at over about 5000-6000 comments, and over around 7000 tags, give or take a little depending on plugin configuration.”

    I few friends of mine who have been running popular blogs for several years had pretty colorful responses when I showed them this. I’ll leave it at that.

    The next time they take me down, I’m gone from HG. I don’t need, what I feel, is pressure salesmanship. Just an opinion based on timing and other stats.


  9. says

    The sale of hostgator worries me. For the first time I had a site taken down because it was using too many of my shared server account resources. Its a small website with hardly any traffic. Are they cutting back in order to make an extra buck I wonder?

    • Che says

      This has happened to me as well. The site hardly had any visitors because is a custom application built for a company and some of the features of the application have stopped working all together.

      Hostgator does not care to respond to support ticket raised for over a month ago. Now I understand what has happened. Bloody Greed of QoQ Profit has destroyed the experience. I migrated the Application to their in-house server and they are happy.

  10. says

    The quality of service at hostgator has gone down exponentially since the takeover. I’ve been paying HG $95 a month for hosting for the past 5 years and have decided to move elsewhere. HostGator’s servers go down more often than before, their customer srvice takes for ever to respond to issues, and their prices are too expensive compared to others.

  11. Shruti says

    What precautionary measure do you think should be taken?
    I mean, people should already be making backups etc…
    If things go down, a simple transfer out would do.
    I hope HostGator is another EIG success story though :)


    • says

      Take a complete backup of your hosting data, emails, databases and other things from complete backup feature of cPanel. This process is single click option but may take time if site contents are large in number.

  12. Diego says

    The quality of service and technical support of Hostgator, has deteriorated terribly. I canceled most of my plans and next month will do the same with the last 2.
    I do not recommend Hostgator.

  13. Holly Jahangiri says

    This is very sad news. :( I chose Hostgator, in large part, because it’s a local business and employs many in Texas – in Houston and Austin. I also chose them because of their stellar service, and have stayed with them thanks to that. I’m really in shock.

    I guess there’s little to do but wait and see, but I never expected this.

  14. Robert says

    Finally the moment of truth! EIG is migrating HG data to their Provo datacenter and the migration has turned disastrous! 2nd August 2013.

  15. Vishesh Kachheda says

    WOW! That’s really a big news.
    My Blog is also hosted on HostGator, I’ve also seen Data Center migration taking place Yesterday but They confirmed on their Facebook Page that It was unsuccessful, Many Blogs & Websites had down times, Me Too!

    Let’s see If we will get Good services from now as always or It’s the bad time started for HostGator & It’s customers.

  16. Jason says

    Disaster for Hostgator users! Both Shared, VPS and Dedicated are lacked many times!
    Moving to a new data center has been made 1×24 hours server down. And today it almost 5 hours down!
    Hostgator is better without EIG!
    Myself has move all my website out from Hostgator today!

  17. Robert says

    I Host On Host Gator And It Seems The New Owners Are Hard Up For Money As I Was A Couple Of Days Past Due And They Would Not Give A 5 Day Extension For $33 Dollars The Old Host Gator HAd Great Customer Service And Would HAve Turned It On Right A Way Not Any More So I Am Moving All of My Sites On Host GAtor To My Dedicated Server I Will No Longer Use Host Gator And I Suggest No One Else Does Either

  18. Bruce Simmons says

    This note is being left in June, 2013.

    Since December of 2012, I’ve had highly questionable customer service from HostGator. It feels very, very different.

    One site I have hosted via HostGator suddenly started going down since Dec of 2012. It has gone down three times, and once, I was locked out of it for 13 hours. (Combination of resolving the issue and replies from HostGator taking 2 to 4 hours each.)

    It does feel very different, because now, every time I have an issue, one of the suggested resolutions is to upgrade my hosting plan.

    I started looking at hosting alternatives, but when I settled on Bluehost, I found out that they too were owned by EIG. Sigh.

  19. Dave says

    And with that sell-out, Hostgator in NOT what is was. Expect virtually NO customer service in contrast to what you were getting. Whenever you take a good thing like Hostgator had and it sells out, you get what spells C-R-A-P.. and that is what you have in Hostgator right now.

  20. Vivek R says

    Hi Harsh,Can we expect acceptance of Indian Debt Cards for paying these EIG group hosting providers ?

  21. Tauseef Alam says

    It’s common in US & UK, big companies do mergers & Acquisitions very frequently. i think its a good move, recently we’d seen a similar kind of move when Symantec acquired Verisign.
    Hope Hostgator services will remain the same .

  22. Rakesh Patel says

    My website is also hosted on Hostgator. I am also thinking to migrate to bluehost.

  23. Pulkit Juneja says

    Yeah, Its Quite Unexpected, That Hostgator is now sold out. Well we can’t even guess what will be its future :/

      • cocco says

        What are you talking about??? Bluehost is dreadful under EIG. Any coincidence that they no longer have an uptime guarantee? Their servers are down for *hours* a month and their support is incompetent.

  24. Satish says

    I never expected to hear this from the worlds number 1 hosting company. Now what is the future of their users and new customers ? Gone !

  25. Gautham Nekkanti says

    Actually from my personal experience on Netfirms, EIG has worsened the quality and price tag of their services.

  26. Sahl Ahmed says

    I see no reason why Brent should be selling such a successful business. It is truly shocking indeed.

    Lets see how well EIG manages hostgator :)

  27. Chandan Sanwal says

    Totally shocking & Sad news for hostgator customers.. But don’t worry EIG will do something better… As Harsh Said, i also recommend you to “do your backup on daily basis”..

  28. Ravi Kochhar says

    Whether EIG would be able to give the same customer support and services that hostagator is known for, only time would tell. Meanwhile we hope that EIG manages to give the same unmatched services and support and even better it in times to come.

    Anyways, good and very useful update for all the hostgator users, Harsh. Do update us on the latest updates as to whether hostgator is still the best option for shared hosting post acquisition.

  29. Mayur says

    Hey harsh,
    Really its sad news for hostgator lovers, because they are not sure about their sites future on hostgator.
    I hope that, EIG group will maintain it easily :)
    Still one question twisting my mind !!! Why Brent Oxley sold it ??

  30. Ehsan says

    It’s really shocking news. Will Hostgator be as good and reliable hosting service as it was before now?

      • Jamie says

        My experience has been one of absolute nightmare. All of a sudden they are shutting down access to things without notice. The customer service isnt what it was and Im paying for a host that is down more than not.

        Yeah its time to leave

        • allan says

          Yeah! They changed my VPS account access too without prior notice. And when I submitted a ticket they took days to answer it. Not like before that they have superb customer service.

          Now, I transferred to another hosting company after 4 years that I stayed to them.

    • Corkky says

      No, the server after the EIG takeover of HostGator is terrible, the server performance is slow slow slow and slower. So horrible… it’s really time to leave HostGator. I’m am a 6+ year customer and the past year had been a nightmare.