- GoDaddy’s quarterly Form 10-Q regulatory filing showed the company completed the acquisition of Dan.com in July for $71.4 million.
- While commission fees on Dan.com are 9%, they can go up to 20% on GoDaddy, which is a big concern for domain investors.
- Domain investors say an unexpected change in commission fees on Dan.com may cause them to seek an alternative platform.
In late June, GoDaddy, the world’s largest web hosting company and registrar, announced the acquisition of Dan.com, a popular domain selling platform. With the acquisition, GoDaddy eliminated one of its strongest competitors in the space. However, GoDaddy has not officially announced the details of the transaction or whether the acquisition is closed or not.
According to Quarterly Regulatory Filing of Form 10-Q, GoDaddy completed the acquisition of Dan.com in July 2022. The report also shows that GoDaddy paid $71.4 million in cash for the deal. In the Subsequent Events section of the report it says:
“In July 2022, we completed an acquisition for $71.4 million in cash. »
Since GoDaddy has yet to officially announce the completion of the acquisition, the hosting giant may be working on rebranding the service or implementing new features ahead of the announcement. Meanwhile, domain investors are concerned about the acquisition, which is expected to incur higher commission fees.
Dan.com charges 9% for domain sales. Meanwhile, GoDaddy currently charges 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 is 15%, and for the amount above $25,000 it is 10%. That 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 move may cause Dan.com users to switch to another platform to avoid high commissions.