Hostopia Jumps on Tucows Hosting
A few week’s back there was a news story not many made much out of happening that I though I could at least mention here. Hostopia will pay $1.6 million in cash for Tucows shared hosting assets.
That includes approximately 14,000 Domain Direct, NetIdentity ItsYourDomain.com customer accounts.
That is a ton of cash changing hands. One has to wonder why Tucows wanted to get out of the shared web hosting game and what will they do now with this extra surplus of cash on their hands? Colin Campbell, the CEO of Hostopia release the usual quote out to the public saying they had high hopes and more…
“Our plan is to provide customers with numerous upgrades and additional value-added services to earn their loyalty and continued business. Traditional web hosting is fast evolving to the SaaS (software as a service) model and Hostopia is perfectly positioned to offer these services to these customers.”
This is a big buyout for sure, and big congratulations deserve to be sent towards Hostopia for getting the deal. If you were Tucows, what would you do now being the actual “cash cow”.
Related Hosting Posts & Podcasts:
# One has to wonder why Tucows wanted to
# get out of the shared web hosting game
Look at their stock price — it’s not hard to see that they needed a cash infusion:
http://tucowed.blogspot.com/#chart