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Entries in GoDaddy (1)

Tuesday
Jun282011

Why GoDaddy's Sale Could be Good for AZ Tech


The Wall Street Journal reported a few days ago that GoDaddy is close to a $2.5 Billion sale of the company to a group of investors that includes KK&R, Silver Lake Partners and Technology Crossover Partners.

This is the largest software success story in Arizona's history and could be the start of a boom for Arizona's software sector. Specifically, here is how this deal could benefit the ecosystem:

  1. Since the deal appears to be a cash deal, the sale of GoDaddy could bring $2.5 Billion into Arizona's economy.
  2. Depending on how many people own shares of GoDaddy, besides Bob Parson becoming a billionaire, this deal has the potential of making a dozen or more people 10+ millionaires.
  3. Usually, with such exits, there are numerous people who use their newly found cash to bankroll a new startup. In fact, this was exactly the type of event that lead to Bob Parson to create GoDaddy after the sale of his accounting software company.
  4. Since its safe to assume the beneficiaries of this deal will be partial to software companies, chances are any new venture they start will also be in the software sector.
  5. With some luck, some of the beneficiaries might start investing in local software startups.

All of this is great news for Arizona's software sector. With a $2.5 Billion software win in Arizona, it should also get the attention of silicon valley VCs.

A big congratulations to all of the people who made GoDaddy the huge success story that it has become.