Starboard made its purchase public in a Securities and Exchange Commission filing, noting the 6.5% stake was made in part because shares in the group were "undervalued" and represented "an attractive investment opportunity".
GoDaddy, which launched a new payments platform in June, has around 20 million subscribers to its webhosting business, is looking to boost cashflows and revenues from a focus on online and offline transactions .
"Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of shares at prices that would make the purchase or sale of shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable," Starboard said in the 13-D filing.
GoDaddy shares were marked 6.5% higher in early Monday trading to change hands at $81.00 each, a move that would still leave the stock with a six-month decline of around 7.6%.
GoDaddy posted stronger-than-expected fourth quarter earnings of 58 cents per share last month, noting a 14.2% increase in group revenues, which topped $960 million.
Looking into the current fiscal year, GoDaddy said it sees overall revenues of around $3.765 billion
Shares took a hit in late November, however, after the group noted that 1.2 million users -- both active and inactive -- of its Wordpress blogging service had their email addresses and customer numbers exposed in a hacking attack.