GoDaddy withdrew its IPO yesterday. I saw the headline on TechDirt, then read Rich Miller's coverage on Netcraft. Bob Parsons talks about it on his blog as well, now that he's put an end to the quiet period. At first I didn't follow Bob's reasoning:
We have war and escalating hostilities throughout the Middle East, with no end in sight. Oil prices are skyrocketing.
But if - as he suggests, you follow the situation all the way to Wall Street - here's what you'd see:
From this perspective, GoDaddy's decision certainly makes sense. In fact, 20 other IPOs have been withdrawn since the beginning of this year.
In addition to paying down debt and expanding its R&D/customer service operations, GoDaddy had planned to use its IPO proceeds for acquisitions. The folks at Endurance International must be pleased that they won't have GoDaddy's $200 million war chest to contend with as they continue their shared hosting rollup.
They should wait for 2008. Election years nealry always make the market jump (up or down)
Posted by: Jason Gulledge | August 10, 2006 at 01:03 AM
Jason,
I imagine with this administration on its way out, the market will jump with joy!
I know I am ;-]
Dan
Posted by: Dan | August 20, 2006 at 11:33 PM