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Research Firm says EIG (Hostgator) heading for Bankruptcy.

Postby Sam » 28 Apr 2015, 22:49

http://www.businessinsider.com.au/gotha ... 015-4?r=US

An independent research firm is basically saying that EIG (owner of HostGator, Bluehost etc.) are heading for $0. I took a brief look through the report. It seems:

-Related party transactions (to the CEO) accounted for 16.5% of EBITDA.
- R&D Spending was much lower than Godaddy and the industry average. This honestly isn't surprising. Most of the work is done by cPanel anyway.
- Service outages are worsening.
- They have overstated revenues.
- Revenue per subscriber is worsening (apparently if you take resellers out of the equation).

Thoughts?
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Re: Research Firm says EIG (Hostgator) heading for Bankruptc

Postby JordanDD » 28 Apr 2015, 23:07

Hey Sam,

Thank you for sharing this new with us.

I am actually pretty sad about it. Why ? Because I use to use kind a lot HostGator. They offer a lots of tools for webmasters and I am a Web Developer so I use them !

If the company that own HostGator close, than will HostGator be close too ? We don't really know for now, but I really hope it will not.

Thank you again for sharing, useful a lot :)

Jordan
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Re: Research Firm says EIG (Hostgator) heading for Bankruptc

Postby DinheiroGelada » 29 Apr 2015, 00:51

Business Insider is not a very good source for news as far as I know. Also hostgator is very strong here in Brazil, so I don't believe they're in bad shape, but who knows?
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Re: Research Firm says EIG (Hostgator) heading for Bankruptc

Postby JeannetteRPaine » 06 May 2015, 08:37

Oh, I use hostgator for hosting. I know about that but they seems fine to me. Well if that happens I must have to be alert not to buy hosting.
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Re: Research Firm says EIG (Hostgator) heading for Bankruptc

Postby PercyBRichardson » 06 May 2015, 12:37

What? Is this true? I have been using the site for my web hosting panel until now. Well, if that's the truth then we need to be careful.
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Re: Research Firm says EIG (Hostgator) heading for Bankruptc

Postby LShun » 06 May 2015, 14:31

It will be wise to backup what you have now in case of a "boom!" as that would be funny, but it also opens another developing opportunity for you to start, who know's, you might accidentally create an interesting theme.
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