American hedge fund Starboard Value LP has invested $800 million in GoDaddy Inc and takes around a 6.5 per cent stake in the company. The New York-based investment fund now has a sizeable stake in GoDaddy Inc. and plans to push the domain registrar to increase its market reach and its performance.
Starboard now controls about 6.5 per cent of the company’s shares. While the hedge fund’s exact plans of this investment are unknown. Though it invests in to increase the margins or improve performance or often looking for seats on the board of the directors.
The Arizona based GoDaddy also hosts websites and other business web related services. Its shares received a boost in early November this year when the latter announced that its revenue swelled from 14 per cent ($964 million) and forecast annual revenue from operations of around $12.7 billion.
Incorporated in 1997, the company was founded by Bob Parsons. The company was known for its marketing campaigns in Super Bowls. The company was sold to private equity firms Kohlberg Kravis Roberts & Co., Silver Lake Partners and Technology Crossover Ventures in 2011.
GoDaddy was founded in 1997 by Bob Parsons and has become known for its provocative publicity, including Super Bowl commercials and spots featuring racing driver Danica Patrick. The company was sold to private equity firms KKR & Co., Silver Lake Partners and Technology Crossover Ventures in 2011.
Since the acquisition by the consortium of equity firms, GoDaddy rebranded itself to attract entrepreneurs and focus on products beyond web addresses such as e-commerce tools. The company also took advantage of the outbreak of COVID-19 where it expands its online presence but the new age web hosting startups increased competition which hampered its growth.