Squarespace Sold to Permira—Should You Move?

If you’re a business owner with a website on Squarespace, you might have seen the recent news: Squarespace is going private in a multi-billion dollar all-cash deal, led by private equity firm Permira.

While this might not seem like a big deal at first glance, it’s something worth considering if your website is a key part of your business strategy.

In this blog post, I’ll break down what this means for you.

What’s Happening with Squarespace?

Squarespace has entered into an agreement to be acquired by Permira, a global private equity firm, for $7.2 billion. This means Squarespace will no longer be a publicly traded company. While the company’s founder, Anthony Casalena, will continue to lead as CEO, the shift in ownership and financial structure could impact how the platform operates moving forward.

What Are the Potential Downsides of the Squarespace Acquisition?

1. Private equity firms, like Permira, are often focused on profitability and cutting costs to ensure a return on their investment. This can lead to less innovation in the platform. If Squarespace starts focusing more on maximizing profits, you might notice fewer new features, slower rollouts of updates, or less investment in improving the overall user experience.
2. When companies get acquired by private equity, it’s common to see an increase in subscription fees or other charges. To make their investment profitable, Permira may need to raise prices, which could affect the affordability of the platform—especially for small business owners.
3. As a private company, Squarespace won’t need to publicly share its financials or operational plans. For business owners, this could mean being left in the dark about future changes. Without the transparency of public filings, it’s harder to predict what’s coming next, which could impact long-term decisions for your website.
4. Squarespace has traditionally catered to small businesses, creatives, and entrepreneurs. However, with private equity backing, the company may shift its focus toward bigger, more profitable clients. This could mean fewer resources or features aimed at helping smaller businesses thrive online.
5. If Permira uses debt to finance this acquisition, Squarespace might prioritize repaying that debt over investing in the platform. This could lead to a slower pace of platform improvements, bug fixes, or customer support upgrades, all of which are important for businesses relying on their website’s performance.

Should You Move Your Website to a New Platform?

On a scale of 1 to 10, I’d recommend business owners place the urgency to switch platforms at around a 5. There’s no immediate need to jump ship, but there are a few things to keep in mind:

• Monitor pricing: If your current Squarespace subscription fits your budget, keep an eye out for any changes in pricing over the next year. If costs go up significantly, it might be worth considering a move.
• Evaluate performance: If you notice a slowdown in updates, new features, or customer support, that could be a signal that the platform is shifting priorities away from serving small businesses.
• Explore alternatives: It’s always a good idea to have backup options. If you’re considering moving to a different platform, WordPress, ShowIt, and Shopify are popular alternatives, depending on your business needs.

What Are Your Alternatives to Squarespace?

If you’re thinking about moving off Squarespace, here are a few alternatives worth considering:

1. WordPress: WordPress is one of the most popular content management systems (CMS) out there, and it’s highly customizable. It’s a great option if you need flexibility, scalability, and extensive SEO control. WordPress also offers a wide variety of themes and plugins, giving you more control over your website’s design and functionality.
2. Shopify: If you’re running an eCommerce business, Shopify is a great alternative to Squarespace. It’s built specifically for online stores and offers a range of tools for managing products, payments, and shipping.
3. ShowIt: ShowIt is a design-first platform like Squarespace but offers more advanced customization without the need for coding. It’s ideal for businesses that want a unique, visually-driven website.

Conclusion: Should You Stay on Squarespace or Leave?

While the Squarespace buyout may not immediately impact your business, it’s important to stay informed about potential changes. If your website is critical to your business, now might be a good time to explore other platforms and evaluate whether staying on Squarespace will serve your long-term needs.

Keep these key points in mind:

• Watch for pricing changes.
• Stay on top of platform updates.
• Have a backup plan in case the platform no longer meets your business goals.

Ultimately, the decision to move should be based on your business’s unique needs, budget, and long-term growth plans.

Have questions about moving your website or finding the right platform? Let’s talk! As a web design and SEO expert, I help businesses like yours make informed decisions about their online presence.