Starboard Value LP, a New York-based activist investor, has taken a 6.5% stake in GoDaddy, worth around $800 million.
Tempe, Arizona-based GoDaddy sells website domains and offers services including website design and brand consulting. The company, which received more notoriety for its Danica Patrick Super Bowl ads than its services, went public in 2015 with $1.4 billion in debt. Starboard purchased the GoDaddy shares because they were “undervalued” and “an attractive investment opportunity,” a regulatory filing with the United States Securities and Exchange Commission said. The Wall Street Journal first reported the news.
Starboard is known for taking a proactive approach to the companies it invests in, often pushing for board seats and new strategies to optimize profit. The company made headlines in April 2020 for engaging in proxy contests at five companies as the economy struggled amid the height of the pandemic. Starboard was in the news in October for selling shares in Box after it failed to win seats on its board.
GoDaddy shares have risen around 1.53% year to date. The company’s shares are up approximately 9.23% today at $83.03 a share.