Go Daddy Group Inc., creator of GoDaddy.com, was taken off the market by a group of private firms who invested approximately $2.5 billion of capital into the company. Based on statements made last week, KKR & Co., Silver Lake and Technology Crossover Ventures have gained control over all of Go Daddy Inc.’s assets and liabilities.
With over 9.4 million customers and directing around 48 million domain names, GoDaddy possesses the title of being one of the leading domain registrars in the world. However, apart from the recent financial year, the company was found to repeatedly be suffering from a loss.
Founded in 1997 by Robert Parsons, GoDaddy remained unsuccessful during most of its life with a fruitless attempt to go public in 2006 and quoting dreadful market conditions, due to which it withdrew its IPO. Presently, CEO Robert Parsons will maintain the same position in the company, with plans to extend its international existence and launching cloud-hosting services.
Irrespective of whether this change in control is due to an investment or a buy, Parsons continues to own the majority of GoDaddy’s shares, while the private equity firms become its largest investors.
After being bought for a mere $2 billion, Silver Lake showed great efficiency in making Skype Global grow, selling it to Microsoft Corporation for $8.5 billion, implying that Silver Lake may be able revalue GoDaddy’s worth as well. KKR and Silver Lake partnered before, investing in Avago Technologies in 2005 while TCV has made major investments worth $135 million in Facebook. Both Silver Lake and TCV have also partnered to invest in Groupon and Zynga.