From the files of, “Say what?”, it appears that well-known domain name registrar GoDaddy is apparently being shopped around for a private sale.
The Wall Street Journal reported on Friday that GoDaddy, the world’s largest domain name registration company, has hired Qatalyst Partners to shop around the company for a potential buyer. With an estimated gross income this year projected to be $940 to $950 million, we do find the rumored target price of $1 billion to be a bit low, but that is the number being thrown around as the magic amount that will get the company to sell.
This really has taken everyone by a bit of surprise as it has been run by Bob Parsons since he founded the company in 1997. There had been no previous rumblings of a potential sale, and this one just came completely out of left field. It’s a bit curious that the company would be looking for a straight sell out to another company as it could potentially make a lot more money by offering up a publicly traded stock, but we’re sure the company has its reasons if these rumors prove to be true.
Thus far GoDaddy is issuing the usual, “We do not comment on rumors or speculation” line you get from most companies.
While many people suspect that the company could be bought up by a private equity firm, I wouldn’t be too surprised to see some of the bigger tech names to begin circling in the waters like sharks. This would seem like a perfect addition to the portfolio of either Amazon or Google, but thus far there has been no word of them being courted.
Some of also speculated that this might be a publicity move leading up to a stock offering, but by the time GoDaddy could file all of the necessary paperwork for an initial public offering, and get the clearance from the Security and Exchanges Commission, this will be a long forgotten story.
Time will tell what exactly is going on, but it sure is curious.
What say you? Why do you think GoDaddy suddenly wants to sell itself off?