Analysts See GoDaddy as Potentially Viable Acquisition Target Again

Dow Jones
Sep 25

0959 ET - After coming out of private equity more than a decade ago, GoDaddy looks like it could be a viable acquisition candidate again, according to Wedbush Securities in a note, pointing to its depressed FCF multiple, strong cash generation and low leverage. The commentary comes after the FT reported that Gen Digital made a takeover offer for GoDaddy. Gen Digital could benefit from cross-selling to GoDaddy's broad base of customers, but there are likely more limited product synergies outside of a rollup of their tools for small- and medium-sized businesses, analysts Ygal Arounian and Chase Tohanczyn say. GoDaddy could be a fit for other software providers targeting smaller businesses, like HubSpot or Inuit, the analysts say. "And while a stretch, in some scenarios we can see a vibe coder interested in its customer base, domain strength, and back end commerce functionality," they say.

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