With the acquisition of Main Street Hub, GoDaddy (NYSE: GDDY) will expand its professional services for improving the digital presence of small businesses.
GoDaddy Acquiring Main Street Hub
This purchase addresses the importance of optimizing social media marketing as entrepreneurs and businesses increase the resources they invest online. GoDaddy has been making a concerted effort to specifically support small businesses with other acquisitions and in-house solutions to simplify the digital ecosystem.
Social media marketing can get complicated and expensive, especially for small business owners. The service Main Street Hub provides does the heavy lifting, so business owners can engage with their customers.
Simply put, Main Street Hub manages the engagement of your customers for the most popular social networks. The company does this by using a proprietary technology to manage the activity on the networks along with branding experts, photographers, writers, designers and marketers. The end goal is to help small businesses build stronger relationships with existing customers and acquire new ones.
Matt Stuart, co-CEO and co-founder of Main Street Hub, said in a press release, “We complement each other strategically, culturally and across our products and services. We now have the scale and resources to help millions of more business owners realize the value of having an optimized social media presence — our team can’t wait to get started.”
GoDaddy has 17 million small business customers with an online presence, which makes the addition of Main Street Hub a perfect fit with the website building and SEO managing services it offers. The company paid $125 million in cash for the acquisition as well as potential future earnouts of up to $50 million.
Lauren Antonoff, Senior Vice President of Presence and Commerce, at GoDaddy, added, “…Even with the right tools, customers struggle to find the time or know-how to effectively manage their social media presence. Joining forces with Main Street Hub better enables us to help our customers reach their goals while saving them time and offering peace of mind.”
As part of the deal, GoDaddy will maintain Main Street Hub’s offices in Austin, Texas. The co-CEOs and co-founders Matt Stuart and Andrew Allison will take leadership positions in GoDaddy’s Presence and Commerce business unit.
The acquisition will give small businesses the ability to purchase comprehensive digital solutions under one company. Those solutions now include website building, hosting, SEO management, communications and now social media marketing.
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