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    HostGator Sold to EIG For $225 million USD

    By in Webhosting

    Bluehost hosting

    Hostgator sold to EIG HostGator Sold to EIG For $225 million USDHere 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.

    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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    { 33 comments… read them below or add one }

    Ehsan

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

    Reply

    Harsh Agrawal

    @Ehsan
    We will be sure about it once the dust will settle down. For now, just configure daily backup using any plugin or service.

    Reply

    Jamie

    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

    Reply

    Mayur

    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 ??

    Reply

    Ravi Kochhar

    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.

    Reply

    Chandan Sanwal

    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”..

    Reply

    Sahl Ahmed

    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 :)

    Reply

    Sreejesh

    I’m also considering to move to a VPS. Which VPS do you suggest?

    Reply

    Harsh Agrawal

    Sreejesh
    I would recommend Knownhost, that’s where SML is hosted now:
    http://www.shoutmeloud.com/knownhost-review-fully-managed-vps-for-wordpress.html

    Reply

    Gautham Nekkanti

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

    Reply

    Satish

    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 !

    Reply

    Pulkit Juneja

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

    Reply

    Harsh Agrawal

    Lets see Pulkit how it goes. As EIG managed to maintain the quality service of Bluehost, I hope they do the same with Hostgator.

    Reply

    cocco

    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.

    Reply

    Rakesh Patel

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

    Reply

    Tauseef Alam

    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 .

    Reply

    Vivek R

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

    Reply

    Dave

    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.

    Reply

    Dave

    EIG reduces the quality of anything it puts its hands on.

    Reply

    Bruce Simmons

    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.

    Reply

    Robert

    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

    Reply

    Jason

    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!

    Reply

    Vishesh Kachheda

    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.

    Reply

    Robert

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

    Reply

    Holly Jahangiri

    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.

    Reply

    Diego

    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.

    Reply

    Shruti

    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 :)

    Thanks,
    Shruti

    Reply

    Nima H.

    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.

    Reply

    Mr Ross

    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?

    Reply

    Harsh Agrawal

    @Mr. Rose
    That happens at time when site is un-optimized or due to some buggy script. I don’t believe they would do such thing intentionally to make customer buy higher packages like VPS. I have shared some tips over here to optimise your site on hostgator: http://www.shoutmeloud.com/solution-hostgator-temporary-places-block-on-your-database.html

    Reply

    Bruce Simmons

    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.

    -Bruce

    Reply

    Tanvir

    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.

    Reply

    Hasan

    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.

    Reply

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