Bob Parsons couldn’t keep his mouth shut; just one of the reasons GoDaddy’s IPO failed.
GoDaddy’s boss Bob Parsons likes to speak his mind. Although he’s done a great job growing GoDaddy, I’ve often said he wouldn’t make a good public company CEO. He’s the type of guy who would chew out analysts on a phone call and blame short sellers for all of his company’s problems (ala Overstock.com).
In fact, back in April, I wrote:
It will be interesting to see how the company changes during this process. GoDaddy President Bob Parsons is not one to keep his lips sealed but will have to do so during the so-called “quiet periodâ€. Parsons might also find himself in a position where he needs to keep his political views separate from the company. His blog has featured stories about divisive issues like torture.
When GoDaddy filed its S-1 in May I wrote:
Going public will cramp Bob Parson’s style. Sure, he’ll be able to drive whatever car he wants. But Parsons is a bit outspoken for a public company’s CEO. He once blogged about torture. His popular blog sticks mostly to domain name issues these days. But I feel sorry for whomever is in charge of handling Parsons during the so-called “quiet periodâ€ before the company goes public.
Bob Parsons gave three reasons on his blog yesterday for pulling the company’s IPO. Reason #2: the quiet period.
If GoDaddy.com is anything, it is an outspoken company and I am an outspoken CEO.
For us, the Quiet Period that came along with the IPO filing has been suffocating. Basically from the time a filing is made until one month after the stock hits the market, the company going public cannot say or do anything that can be construed as something being done to “hype its stock.â€
Parsons also says one of the reasons he pulled the plug was that GoDaddy didn’t need to go public because he’s the only shareholder. There are no VCs pushing for the IPO. This may be true, but GoDaddy has doled out options to many of its employees. Parsons may still be cashing in, but option holders lose out by not going public. I wonder if Parsons is doing anything to compensate them?
Two other questions: 1) Surely Parsons knew what the quiet period would entail before filing? 2) Surely someone explained accounting to Parsons before he decided to file his S-1?