Go Daddy said to be in talks for a sale
Go Daddy Group Inc. is negotiating to sell itself for more than $2 billion to a private investment group led by Kohlberg Kravis Roberts & Co. and Silverlake Partners.
The talks were confirmed by a person familiar with the negotiations between the investment group and Go Daddy, the world’s largest Internet domain registrar. The person spoke on condition of anonymity because the person was not authorized to comment on the private discussions.
Go Daddy, which is known for its extravagant marketing that dates back to its first Super Bowl commercial in 2005, has been rumored to be on the market since last year, but in January, founder and Chief Executive Bob Parsons denied to The Times that the company was looking to sell itself.
Go Daddy, based in Scottsdale, Ariz., and KKR said they had no comment regarding the purchase rumors. Silverlake did not return messages seeking comment.
A change that will soon allow any word to be used as a domain extension, such as .coke or .ford, is likely to have boosted Go Daddy’s valuation, said Peter Conti, an analyst with online research firm Borrell Associates. Conti said Go Daddy’s price tag seems to have doubled since rumors of a sale first began swirling in September.
“Time was definitely on their side,” he said. “Some of these changes in these rules for the domain level [are] just going to help boost their valuation.”
