Starboard acquires a 6.5% stake in KKR, Silver Lake-backed GoDaddy worth about $ 800m

Dec 28, 2021 | News

Activist investor Starboard Value LP has purchased a 6.5% stake in web services firm GoDaddy worth about $800m, according to a regulatory filing with the U.S. Securities and Exchange Commission.

Although no longer a major shareholder, Silver Lake and KKR still hold seats on the company’s board of directors.

GoDaddy was founded by Bob Parsons in 1997 and has become known for its provocative advertising, including spots featuring Super Bowl commercials and racing driver Danica Patrick. The company was sold to private equity companies KKR & Co., Silver Lake Partners and Technology Crossover Ventures in 2011.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Sign up

Starboard said that GoDaddy’s shares were undervalued and represented an attractive investment opportunity, according to the filing.

The Wall Street Journal was the first to report the acquisition of the stake. The report also said that Starboard plans to push the company to improve its performance.

Arizona-based GoDaddy has seen a surge in online traffic as several businesses increasingly shifted to digital operations due to the COVID-19 pandemic.

Starboard Value and GoDaddy did not immediately respond to Reuters requests for comment.

Shares of GoDaddy, which have dropped 8% so far this year, rose 2.6% in premarket trading.

Source: Reuters

Can’t stop reading? Read more