 In 2005 the company had a turnover of £20 million and made £5 million profit.The company also became known for hosting lavish staff Christmas parties; an event in 2005 costing £600,000 featured appearances from Jonathan Ross, The Darkness and Boney M.

In 2006 Fasthosts was sold to German internet service provider United Internet for £61.5 million, netting Michael £46 million for his 75% stake.Michael remained as CEO until 2009, when he left to found Livedrive.