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Activist investor Starboard Value holds a 6.5% stake in GoDaddy, triggering a rise in the stock price of the online services company.
According to regulatory documents, the hedge fund purchased more than 10,000 GoDaddy shares, valued at approximately US$800 million. The new shares become Starboard’s largest holdings.
After the news came out on Monday, GoDaddy’s stock price rose by more than 9%.
Although the company’s online traffic surged during the Covid-19 pandemic, the company’s stock price remained flat this year.
The Wall Street Journal first reported on Starboard’s shares.
Starboard Value and GoDaddy did not immediately respond to CNBC’s request for comment.
Starboard Value CEO Jeff Smith was a prolific activist investor even during the pandemic when driving company change in the veterinary, chemicals, and healthcare industries.
According to documents as of the first quarter of 2020, Starboard Value manages approximately US$6.2 billion in assets. Smith spun out the New York-based hedge fund from the investment company Ramius in 2011.
— CNBC’s Jesse Pound provided a report.
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