Starboard Value builds 6.5% stake in GoDaddy, sending shares up 8%

Finance

In this article

Spencer Platt | Getty Images

Activist investor Starboard Value has taken a 6.5% stake in GoDaddy, sparking a rally in shares of the web services company.

The hedge fund bought more than 10,000 shares of GoDaddy, worth about $800 million, according to a regulatory filing. The new stake became the biggest holding for Starboard.

Shares of GoDaddy jumped more than 9% on the news Monday.

Loading chart…

The stock is flat on the year even as the company experienced a surge in online traffic amid the Covid-19 pandemic.

The Wall Street Journal first reported Starboard’s stake.

Starboard Value and GoDaddy did not immediately respond to CNBC’s requests for comment.

Starboard Value CEO Jeff Smith has been a prolific activist investor even during the pandemic as he pushed for changes in companies across the veterinary, chemicals and health-care industries.

Starboard Value manages about $6.2 billion in assets, according to filings through the first quarter of 2020. Smith spun the New York-based hedge fund out of investment firm Ramius in 2011.

— CNBC’s Jesse Pound contributed reporting.

Products You May Like

Articles You May Like

American homebuyers are finding UK bargains, discounted by a weaker pound
Even as expanded child tax credit helped millions out of poverty, some still haven’t accessed funds
Activist Jana prepares to bring star nominees to Freshpet’s board. Here’s how it may create value
Arizona attorney general calls student loan forgiveness ‘unconstitutional’ in legal challenge to Biden’s plan
Justice Department’s fight with JetBlue and American Airlines heads to court

Leave a Reply

Your email address will not be published.