Google Sells Its Domain-Hosting Business to Squarespace
In a major shift, Google has decided to shutter its domain-hosting service, Google Domains, and transfer its assets to Squarespace, a popular website builder. This move affects approximately 10 million domains hosted by Google, including those procured as part of Google Workspace subscriptions.
Google Domains, since its inception as a beta service in 2014, had provided a quick and straightforward platform for users to purchase domains. However, as part of the company’s strategy to “sharpen our focus”, this service is being phased out. According to a statement from Google’s VP and GM of merchant shopping, Matt Madrigal, the move is also designed to support a smooth transition for its customers, with the assurance that Squarespace, known for its domain management and web building tools, would serve as the perfect home for their websites.
As part of the “definitive agreement” between Google and Squarespace, current customers are guaranteed to retain their renewal prices for the next 12 months. Squarespace is also set to provide incentives encouraging users to build their websites on its platform. However, some customers, who used Google Domains purely for convenience, may find that Squarespace does not add any additional value. The platform’s domain purchasing process is designed with the assumption that users will also be constructing their websites from scratch on Squarespace.
The agreement also impacts Google Workspace subscribers. Those who intend to purchase a domain as part of the subscription process will now be registering it through Squarespace by default. However, customers still retain the flexibility to purchase their domain elsewhere and later link it back to Workspace. Squarespace is set to become the exclusive domain provider for Workspace customers buying domains directly through Google for the next three years. This also entails Squarespace taking over domain billing and support services for those who have purchased domains through Google while subscribed to Workspace.
While the deal is expected to close in the third quarter of 2023, subject to meeting regulatory hurdles and closing conditions, the full transfer of services may not be complete until “2024 and beyond”. The deal is reported to be worth $180 million.
This sale comes as Google continues to shutter certain services, with Google Domains becoming the latest addition to the company’s graveyard. The company recently shut down Currents, a Google Plus offshoot for enterprise, and its cloud gaming platform, Stadia.
