LessAccounting Claims They Turned Down Acquisition Offer From “Low Moral Fiber” GoDaddy

Billy Gallagher

Billy Gallagher is a contributor for TechCrunch. He is currently the co-student body president at Stanford University, where he is on track to graduate with a bachelor’s degree in economics in 2014. Billy was previously the president and editor in chief of The Stanford Daily. Disclosures: As a poor college student, I own no stock and have no financial interests... → Learn More

Friday, July 20th, 2012
lesseverything

I’ve found this story reads best when listening to Hulk Hogan’s intro music. I’ve embedded a video below for your reading pleasure.

On Wednesday, I reported that GoDaddy acquired cloud-based financial management application company Outright, with all 24 employees joining GoDaddy. Now, web and mobile app developer LessEverthing tells me they turned down an offer from GoDaddy in 2009.

LessEverything’s first product, LessAccounting, is small business accounting software—and an outright Outright competitor. [Pause for laughter] The company claims it has had over 30,000 sign-ups and processes billions of dollars per week.

The founders, Steve Bristol and Allan Branch, tell me GoDaddy was in the market for an online accounting application for small businesses in 2009 and LessAccounting was very high on their list. Bristol tells me financial terms were not discussed, as LessAccounting rejected the offer after a number of phone calls.

Obviously, this raises the questions: how far down the list was Outright if GoDaddy started shopping for an accounting app in 2009? And why did it take GoDaddy three years to acquire one?

Yesterday, Branch, owner of the world’s greatest facial hair, posted about GoDaddy’s Outright acquisition on his company’s blog.

“GoDaddy didn’t share our ethic of trying to make things easy for people, their support sucks, and they have low moral fiber,” he writes. “That’s not something we want to be associated with.”

Branch said he wrote the post because it “seemed like a fun post to put out there.” Here’s the really fun part:

“We don’t have anything against the folks at Outright, and we wish them the best. It’s just we are a firm believer in “you are who you associate with.” For those of you who feel the same or have a moral object to using Outright now that they are part of the GoDaddy family, use the coupon code “NoDaddy” for four months free of LessAccounting.com.”

Translation: You seem like a really nice company, Outright. But we think your new partner sucks and we’re going to do our best to take all of your customers. How’s it taste?!?The post goes on to advise users to stop using GoDaddy and switch to a different web host.

“In 2009, Go Daddy was looking at expanding its product line and had discussions with numerous companies,” GoDaddy CEO Warren Adelman said in an emailed statement. “Ultimately, Go Daddy decided to not pursue an acquisition and/or partnership at that time in order to focus on our existing products. When we were introduced to the Outright team, it made sense for Go Daddy customers because Outright brings more to the table than just a SMB solution; they also have a very talented team and we knew we wanted to work with them going forward.”

Play us out, Hulk.


Company: Less Everything
Launch Date: January 1, 2007

Less Everything is a privately held web application company based in Jacksonville, FL, United States. The company was co-founded in 2007 by President and CEO Steven Bristol and Vice President and COO Allan Branch. Services include web, graphic and UI design; customized software development; web applications; project management; code and performance reviews; Ruby on Rails tutoring; technical company interviews; search engine marketing; search engine optimization; and social media marketing.

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Company: GoDaddy.com
Website: GoDaddy.com
Launch Date: 1997

Go Daddy is the Web’s top platform for small businesses and offers everything needed to to grow and manage an online presence, from domain names and website builders to complete eCommerce solutions. The company has earned a place as the world’s #1 ICANN-accredited domain registrar by delivering world-class products at competitive prices and supporting them with industry-best service, delivered 24/7/365. Go Daddy is the world’s largest domain name registrar and Web hosting provider * More than 54 million domain...

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Company: Outright
Website: outright.com
Launch Date: June 1, 2008
Funding: $7.5M

Outright.com provides a simple online bookkeeping application. Outright is designed for very small businesses - entrepreneurs, self employed folks, online sellers, and other people who have to file a Schedule C. It automatically imports all of your data from Amazon, eBay, Etsy, PayPal, banks, and credit cards so that you can track your income and expenses, see how your business is doing, and be organized at tax time. It has an online version and an iPhone app, which...

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