DNS - GoDaddy.com to Go On the Block, Expected to Fetch at Least $1 Billion

GoDaddy.com, the Web site that registers Internet domain names, is reportedly about to put itself up for sale by auction, according to the Wall Street Journal. Analysts believe the world's largest Web site registrar may fetch more than $1 billion (some estimates go as high as $1.4 billion).

GoDaddy.com has sold over 43 million domain names since its inception. Qatalyst Partners, a firm run by technology banker Frank Quattrone, has been hired for the purpose of overseeing the auction. Domain name registrars are generally considered attractive purchases because of the steady and predictable flow of fee-based subscriptions. GoDaddy reportedly generates about $2.7 million a day in revenue.

Private equity firms are believed to be the targeted buyers of GoDaddy. Two of the company's smaller competitors, Network Solutions (News - Alert) and Register.com, were initially bought by equity firms, though Register.com was eventually sold to Web.com Inc. for $135 million.

Registering domain names is not GoDaddy.com's only business: the company also offers e-commerce, security and other services to businesses. The company posted revenue of between $750 million and $800 million in 2009, and 2009 revenue growth stood at about 22 percent. In 2006, the company filed paperwork to make an initial public offering (IPO) which it later withdrew.

The Scottsdale, Arizona company was founded by colorful businessman Bob Parsons (News - Alert) in 1997 and is famous for its rather outrageous ads featuring scantily clad women, called “GoDaddy Girls,” including race car driver Danica Patrick. Though the company has kept its internal business somewhat close to the vest, it certainly hasn't been shy about celebrating its successes: according to Web Host Industry Review, the company spent $2.5 million on its 2008 employee Christmas party.

GoDaddy.com CEO Bob Parsons is famous for his outrageous and campy video blog. On his September 2, 2010 entry, Parsons expressed that he was considering selling the company.

Spokespeople from GoDaddy or Qatalyst Partners have declined to comment on the planned auction.