Web.com (1995–2007)
| Company type | Public |
|---|---|
| Industry | Web services, web hosting, domain registration, digital marketing |
| Founded | 1997 |
| Founder | Bill Bloomfield |
| Headquarters | Atlanta, Georgia , United States |
Key people | Jeff Stibel (President) |
| Products | Domain registration, web hosting, website design, e-commerce platforms, digital marketing, email services |
| Website | web |
Web Internet LLC, which later became known as Web.com Inc., was established in 1997 by Bill Bloomfield, who was then serving as President of Web Service Company—the owner of the Web.com domain. Originally, the company launched as a web portal featuring paid search, shopping directories, and complimentary multilingual email services; however, these services did not attract significant user engagement. In 1999, Will Pemble was appointed CEO with the objective of focusing Web.com’s operations on domain registration and web hosting. Pemble purchased the business from its parent company in 2004 and shortly thereafter founded Perfect Privacy, LLC, a subsidiary specializing in private domain registration services.
In 2005, Pemble sold Web.com to Interland, Inc., which subsequently adopted the Web.com name. The business broadened its offerings to include both do-it-yourself and professional website design, web hosting, e-commerce platforms, digital marketing solutions, and email services. By March 2007, Web.com had amassed roughly 166,000 paying hosting customers.
Aimed primarily at small enterprises and entrepreneurs, Web.com also provided resources to assist clients in establishing an online presence. Its brand family encompassed Web.com, Interland, Trellix, and HostPro. On September 30, 2007, Web.com merged with Website Pros to create the current incarnation of Web.com.
History
The origins of the company trace back to MicronPC, a multi-billion-dollar personal computer manufacturer that ventured into web services by acquiring HostPro in 1999. In 2001, MicronPC merged with Interland, Inc., a publicly traded firm headquartered in Atlanta, Georgia. Following this merger, MicronPC divested its PC manufacturing operations to concentrate exclusively on Internet hosting services. Interland specialized in web hosting solutions such as shared and dedicated hosting and expanded its footprint through acquisitions of companies including Worldwide Internet Publishing Company, Innerhost, Dialtone, Burlee, Trellix, Communitech, and WazooWeb between 2001 and 2006.
In August 2005, Interland’s board replaced CEO Joel Kocher with Jeff Stibel to spearhead a corporate turnaround. The company also brought in new leadership: Vikas Rijsinghani (founder of VerticalOne) as CTO and Judy Hackett (formerly CMO at CareerBuilder) as CMO. In December 2005, Interland acquired Web.com for $4.8 million and rebranded itself under the Web.com identity.
Web.com held a portfolio of 21 patents covering technologies related to web hosting infrastructure, software-as-a-service platforms, customer control panels, and website builders; some of these patents were licensed to wholesale provider Hostopia. By February 2007, Netcraft ranked Web.com among the most dependable hosting providers.
During the dot-com boom and bust cycle, Interland’s stock price experienced dramatic fluctuations—initially soaring before collapsing to become one of the poorest performing U.S. stocks. However, following management changes and the transition to the Web.com brand, the stock rebounded significantly—closing at $7.15 at the time of the Website Pros merger—a more than threefold increase since August 2005. Financial statements documented revenue and subscriber growth across four consecutive quarters after the turnaround effort reversed earlier declines. The company reported profitability in Q1 2007 but incurred losses in Q2 due to costs associated with the merger.
Legal
The company has been involved in multiple legal disputes, some predating its acquisition by Web.com:
- In 1999, Novell filed a lawsuit against Interland alleging underpayment of royalties; this case was resolved through an out-of-court settlement in 2005.
- In 2000, the firm settled an insurance claim resulting in a $6 million payout.
- In June 2006, Web.com initiated litigation against Go Daddy for alleged patent infringement concerning hosting and domain registration services.
- After acquiring WebSource Media on May 24, 2006, Web.com sought to annul the acquisition by June 23 upon uncovering "unfair and deceptive acts." Subsequently, a court appointed Web.com to oversee WebSource’s operations as receiver’s agent.
Website Pros Advantages
On June 26, 2007, Website Pros declared a definitive agreement to acquire Web.com for an estimated $130 million, consisting of $25 million in cash and the balance paid in stock. Following the merger, Web.com leadership, including Jeff Stibel as president, obtained two of the seven available board positions. The transaction was completed on October 1, 2007. Prior to the acquisition of Web.com, Website Pros had broadened its offerings by purchasing 1ShoppingCart.com, LEADS.com, NetObjects, Renovation Experts.com, and Submitawebsite.