Starboard Value takes a 6.5% stake in GoDaddy, shares jump by 8%

Starboard Value takes a 6.5% stake in GoDaddy, shares jump by 8%

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Activist investor Starboard Value has purchased a 6.5 percent position in GoDaddy, causing the online services company’s price to rise.

According to a regulatory filing, the hedge fund purchased more than 10,000 shares of GoDaddy for $800 million. As a result, Starboard’s new share became the company’s most extensive ownership.

On Monday, GoDaddy’s stock rose more than 8% as a result of the news. Even though the company has seen a boost in internet traffic as a result of the Covid-19, the stock is flat on the year. GoDaddy shares also jumped 2.6% in premarket trading.

During the pandemic, Starboard Value’s CEO, Jeff Smith, was a prominent activist investor, pushing for improvements in companies across the veterinary, chemical, and health-care industries.

Filings of the first quarter of 2020 suggest that about $6.2 billion in assets are managed by Starboard Value. In 2011, Smith spun the New York-based hedge fund out of the Ramius investment group.

Starboard intends to press the corporation to improve its performance. The acquisition of the shareholding was first reported by the Wall Street Journal. According to the filing, Starboard believes GoDaddy’s stock is cheap and represents a good investment opportunity.

Due to the COVID-19 epidemic, some firms have progressively switched to digital operations, according to Arizona-based GoDaddy.

Other updates 

The stock of China Evergrande Group soared on Tuesday morning after the property developer announced on Sunday that it had made preliminary progress in resuming construction.

With over $300 billion in liabilities, China Evergrande has been selling assets and shares to raise cash. Earlier this month, the business failed to pay $82.5 million in offshore coupons. The S&P 500 closed at its 69th all-time high in the United States, despite lower-than-average volumes owing to the holidays.

As cases of the Omicron variant spread across the United States, Apple Inc shuttered all of its 12 New York City locations to indoor shopping. On Tuesday morning, Asia Pacific markets were mainly higher, with U.S. counterparts closing at a new high, fueled by optimism that the global economic recovery can withstand the threats posed by COVID-19 and tightening monetary policy.

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