Activist investor Starboard Value LP has a sizable 6.47% stake in GoDaddy (NYSE:GDDY) Inc, and plans to push the Internet domain registrar and web hosting company to boost its performance, The Wall Street Journal reported exclusively on Monday.
“Starboard controls a roughly 6.5% stake in the company worth around $800 million, according to people familiar with the matter,” said the newspaper.
While the hedge fund’s exact plans couldn’t be learned, the Journal noted that 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.
Investors responded well to the news, sending GoDaddy (NYSE:GDDY) shares up nearly 6.3% to $80.82.
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In addition to selling domain names, Tempe, Arizona-based GoDaddy hosts websites and sells other web services to businesses.
Earlier this year, GoDaddy reported that third-quarter revenue rose 14% to $964 million and forecast full-year revenue of around $3.76 billion.
Billionaire American entrepreneur and philanthropist Bob Parsons founded GoDaddy in 1997, and it became known for its provocative advertising, including Super Bowl commercials and spots featuring race-car driver Danica Patrick.
The company was sold to private-equity firms KKR & Co., Silver Lake Partners and Technology Crossover Ventures in 2011.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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