- GoDaddy’s Form 10-Q quarterly regulatory filing showed that the company completed the acquisition of Dan.com in July for $71.4 million
- While the commission fees on Dan.com is 9%, it can go up to 20% on GoDaddy, which is a big concern for domain investors.
- Domain investors state that an unexpected change in commission fees on Dan.com can cause them to look for an alternative platform.
At the end of June, the world’s biggest web hosting company and registrar, GoDaddy announced the acquisition of Dan.com, a popular domain sales platform. With the acquisition, GoDaddy eliminated one of its strongest competitors in the field. However, GoDaddy didn’t officially announce the transaction details nor if the acquisition was closed or not.
According to the Form 10-Q quarterly regulatory filing, GoDaddy closed the acquisition of Dan.com in July 2022. The report also shows that GoDaddy paid $71.4 million in cash for the deal. Under the Subsequent Events section of the report, it says,
« In July 2022, we completed an acquisition for $71.4 million in cash. »
Since GoDaddy still didn’t announce the completion of the acquisition officially, the hosting giant might be working on rebranding the service or implementing some new features before the announcement. Meanwhile, domain investors are concerned about the acquisition, which is expected to result in higher commission fees.
Dan.com is charging 9% for domain sales. Meanwhile, GoDaddy is currently charging between 10% and 20%, depending on the value of the domain. For domains up to $5,000 the company charges 20%, between $5,001 and $25,000 the commission fee is 15%, and for the amount over $25,000, it is 10%. This means domain investors who focus on low-end domains will have to pay more than double if GoDaddy changes commissions for Dan.com. Such a decision can cause Dan.com users to switch to another platform to avoid high commissions.