New York's Starboard acquires stake worth of $800 million in GoDaddy, shares jump 8%

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New York's Starboard acquires stake worth of $800 million in GoDaddy, shares jump 8%

There's a new acquisition in the global corporate sector as the current year, 2021, comes to a close and the New Year, aka 2022, approaches round the corner. Starboard Value LP, the New York City-headquartered American activist hedge fund, had purchased a 6.5 per cent stake in web hosting and domain services provider GoDaddy Inc for a stark upsum of $800 million, a regulatory filing with US SEC (Securities and Exchange Commission) had unveiled on Monday, 28th December.

Followed by the statement, shares’ of GoDaddy Inc., the Tempe, Arizona-headquartered American multinational web services company, which had faltered 8 per cent before Monday, had rounded off the day’s Wall Street 8.16 per cent higher to $82.24 apiece after jumping as much as 2.5 per cent in pre-market trading, paring all of 2021 losses.

Aside from that, in a regulatory filing with US SEC, the New York City-based activist hedge fund was quoted saying that GoDaddy stakes were undervalued and could provide with a lucrative investment option. Nevertheless, a Wall Street Journal news had reported the acquisition of GoDaddy stake earlier in the day, while the report also added that the activist hedge fund was looking to improve GoDaddy’s performance which appeared to have met with a stagnation over recent months.

GoDaddy sells of 6.5% stake to Starboard in $800 million deal

If truth is to be spoken, the latest move from Starboard Value LP came against the backdrop of a pluperfect business landscape in online space, as a pandemic-driven uptick to shift businesses online alongside a broader transformation towards work-from-home tradition across the globe had benefitted the company by a significant margin over the past year.

Nevertheless, while being asked over the subject matter, neither Starboard Value LP nor GoDaddy had agreed to comment on the issue.