GoDaddy had a bit of an average performance for most of the year. However, earlier this week GoDaddy’s shares started moving up. So much that at one point GoDaddy’s shares rose by 10%. So, what’s the reason behind this sudden spike in demand for GoDaddy’s share?
The reason behind this isn’t another exciting product or service announced by the company. Rather, it is because a prominent company decided to invest in GoDaddy. Starboard Value has bought 10.0 million shares of GoDaddy, which totals up to a 6.55% stake in the company. In terms of money, Starboard Value has invested almost $800 million.
The scale of investment gave confidence to the share market, which led to rocketing of GoDaddy’s shares. Starboard Value investment in GoDaddy won’t be its first association with a domain name company. It has also invested in another domain name company Web.com.