GoDaddy
Starboard Value LP has purchased a 6.5% stake in GoDaddy that is worth approximately $800 million dollars.
Starboard typically pushes the companies it invests in to boost profit margins or improve performance in other ways and often seeks seats on their boards.
Although there is no official press release by GoDaddy, the news about the 6.5% stake by Starboard has been reported on various tech and financial media. GoDaddy has also submitted a regulatory filing with the U.S. Securities and Exchange Commission.
According to StarboardValue.com:
Starboard Value LP is a New York-based investment adviser with a focused and fundamental approach to investing in publicly traded U.S. companies. Starboard seeks to invest in deeply undervalued companies and actively engage with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.
GoDaddy stock has jumped almost 8% today. Note: We currently hold no position in GDDY; this news article is not investment advice.
It’d be a very interesting 2022 🙂
FYI buying shares on the open market isn’t a cash infusion to GoDaddy
J – It’s a 6.5% stake in the company, did you bother to read the article or the SEC filing?
They bought 6.5% on the open market. They spent $800 million on the shares but they didn’t buy them from GoDaddy – it’s not a cash infusion.
J – No they didn’t. Read the SEC filing again.
Shares were bought with voting power, can’t happen in the open market. They bought 6.5% of the company *from* the company. End of story.