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GoDaddy sells 6.5% of its shares to an investment fund

The hosting company Godaddy has sold 6.5% of its shares to the fund investment Starboard Value. This is stated in a report that the company has submitted to the United States Securities and Exchange Commission. According to the Wall Street Journal, the investor has paid GoDaddy about $ 800 million for its shares. Starboard Value estimates that the shares of the hosting group, at the price paid for them, are «below its value«, So they were«an attractive investment opportunity«.

The company’s shares have fallen in recent weeks, from a July high of $ 90.33, to $ 65.70 in November, after a data breach was discovered in WordPress that affected 1.2 millions of GoDaddy users and that led to the decline in the price of their titles mentioned. Of course, the news of the sale of shares to Starboard Value has made its value rise above $ 80 again.

As it appears in the report communicating the sale of shares, «Depending on general market conditions, other investment opportunities available to reporting entities, and the availability of shares at prices that would make the purchase or sale of shares desirable, reporters may decide to increase or reduce their position in the issuer , through, among other things, the purchase or sale of shares in the free market, in private transactions or in other formats, on the terms and occasions that the informants deem appropriate«.

This probably means that Starboard Value does not see this operation as a mere opportunity to make money. In fact, Starboard have plans to boost GoDaddy in order to improve your performance. Regardless, GoDaddy’s fourth quarter was better than expected. Last month it had earnings of $ 0.58 per share, and the group’s revenue was up 14.2% to $ 960 million. Additionally, for the current fiscal year, GoDaddy expects its overall revenue to be around $ 3.7 billion.

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