GoDaddy To Sell Shares, Offer IPO, To Raise $100m

Posted in: Domain Names at 10/06/2014 20:30

GoDaddy, the world's largest domain name registrar and webhost, has announced plans to offer an initial public offering of shares that will raise around $100m.

The number of shares to be offered and the price range for the offering have not yet been determined, and the initial estimate is just a placeholder until closer to the offering date meaning the amount raised is likely to be significantly higher. But the company has not made a profit since 2009.

In a filing with the Security and Exchange Commission on Monday, it showed the company lost $279 million in 2012, bled another $200 million last year on revenues of more than $1.1bn and 2014 doesn't look much better, with another $51 million lost in the first quarter, according to CNN and The Guardian's analysis of the filing.

"What's going on? The company's still recovering from a bad stretch. It was mired in debt back in 2011, when three private equity firms came to the rescue: KKR & Co., Silver Lake Partners and Technology Crossover Ventures." The companies reportedly paid around $2.25 billion to buy a major stake in the company.

In a separate but related announcement, GoDaddy announced founder Bob Parsons has resigned his position as Executive Chairman of the Board in order to devote more time to his ventures outside of GoDaddy. Parsons will continue to serve on the board of directors.

"Bob's vision and uncommon approach has created a great company, and a loyal customer base. Bob built GoDaddy into the world's largest domain name and Web hosting provider, and his contribution to GoDaddy, and our industry in general, is immeasurable," said GoDaddy CEO Blake Irving. "As a board member and principal shareholder, Bob will continue to play an important role as we define the next chapter for GoDaddy."

"Blake and his team have chartered an awesome course for the company," said Parsons. "They've got a true passion for our customers and a vision for how we translate that into products and services to help organizations of all types and sizes succeed. I look forward to focusing on my new ventures, while continuing to guide the strategic direction of GoDaddy in my role as a board member."

A registration statement relating to these securities has been filed with the US Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are acting as lead joint book-running managers for the proposed offering, Barclays Capital Inc., Deutsche Bank Securities Inc. and RBC Capital Markets, LLC are acting as book-running managers for the proposed offering, and KKR Capital Markets LLC and Stifel, Nicolaus & Company, Incorporated are acting as co-managers for the proposed offering.

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