Starboard Value, in its filing, revealed that it held stakes in website service company GoDaddy Inc. The activist investor said that it might push the company for changes to improve its stock performance.
Hedge Fund Starboard, which is based out of New York, disclosed in its regulatory filings that it held a 6.5% stake in the Technology Company, GoDaddy and it believes the company is undervalued.
Starboard, in its filing, mentioned that it would meet the Board and Management of GoDaddy as an investor to discuss ways to improve value for shareholders. This exercise would also include possible board, operations, and business combinations changes.
Request for comment did not elicit any immediate response from the representative of GoDaddy.
Share prices of GoDaddy have fallen by 8.2 % in 2021 to date. It rose by about 7% on Monday to $81 at 9.32 a.m. New York, giving it a market capitalization of approximately $12.7 billion.
Starboard is known for its activism and has a history of pushing for changes in companies in the technology sector. This includes ON Semiconductor Corp, ACI Worldwide Inc., and Cerner Corp. is selling itself to Oracle Corp.
Starboard had launched an unsuccessful campaign early this year for a board representation in Box Inc.
GoDaddy was acquired by KKR and Co. and Silver Lake Partners in 2011 in a private takeover deal. The company went public in 2015.
Starboard bought more than 10,000 shares of GoDaddy, valued at around $800, making it the most significant holding for the company. This move sparked a rally in GoDaddy stocks after a flat year till now.
