WSJ: Go Daddy is Up For Sale
Friday, September 10th, 2010
WSJ reports that Go Daddy is up for sale.
The Wall Street Journal is reporting that The Go Daddy Group is putting itself up for sale, citing unnamed sources. The Go Daddy Group runs domain name registrar GoDaddy.com.
These sources tell WSJ that the company has retained Qatalyst Partners, a firm run by veteran technology banker Frank Quattrone, to shop the company.
WSJ’s sources quoted 2009 revenue for the company of between $750 million to $800 million. These sources were either referring to sales or they have incorrect information, as GoDaddy’s actual revenue for 2009 was $610 million. The company previously told me it is forecasting $940 million to $950 million in gross sales this year.
With operating cash flow of around $150 million this year and steady growth, the company should fetch over $1 billion. However, potential buyers beware: during the lengthy checkout process you will be offered a number of add-on companies for sale, and might end up spending much more than you originally planned.
I contacted GoDaddy and it said it had no comment, as the company doesn’t comment on rumors.