GoDaddy, best known as a website builder and domain-registry firm, has just received an $800 million infusion of capital from activist investor Starboard Value LP. The investment gives Starboard an estimated 6.5% stake, the Wall Street Journal reported on Monday (Dec. 27), citing sources.
What Starboard has in mind for GoDaddy is anyone’s guess, but history has shown that the hedge fund demands performance from the companies it backs. And Starboard reportedly wants a seat on the board of directors of those firms.
See also: GoDaddy Launches Payments Processing Solution For SMBs
While GoDaddy still offers the same services it did when it launched in 1997, it’s a much bigger operation now, offering businesses of all sizes everything from the basics of opening a digital storefront to selling on other marketplaces. The company’s latest move is solidifying its foothold in payments so it can truly be a full-service one-stop-shop.
The company’s $320 million acquisition of omni-commerce payment solution Poynt enables merchants to sell and accept payments anywhere using its suite of products, PYMNTS reported last year. At the time, Poynt was used by over 100,000 merchants.
Read more: GoDaddy Agrees To Buy Poynt To Boost Digital Payments Technology
GoDaddy has acquired an estimated 27 companies, according to reports, including Sellbrite in 2019, which plugs merchants into digital markets or social media.
Originally founded by Bob Parsons, GoDaddy was acquired by private-equity firms KKR & Co., Silver Lake Partners and Technology Crossover Ventures in 2011, which took the firm public in 2015.
By that point, GoDaddy had branded itself as an all-in-one shop for the stampede of small businesses, organizations and individuals seeking an online presence.
Silver Lake and KKR are still board members but are no longer major shareholders, the Wall Street Journal reported.
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