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Starboard Value builds 6.5% stake in GoDaddy, sending shares up 9%

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Spencer Platt | Getty Images

Starboard Value, an activist investor has purchased a 6.5% share in GoDaddyThis triggered a surge in share prices for the web service company.

According to regulatory filings, the hedge fund purchased more than 10,000 GoDaddy shares, which is worth approximately $800 million. Starboard now holds the largest stake in GoDaddy.

GoDaddy shares rose more than 9 percent on Monday’s news.

While the stock was flat in the previous year, it experienced an increase of online traffic during the Covid-19 pandemic.

The Wall Street Journal first reported Starboard’s stake.

CNBC reached out to Starboard Value and GoDaddy for clarification but they did not respond immediately.

Starboard Value CEO Jeff Smith was a prodigious activist investor, even in the years of pandemic. He pushed for change within companies all over. the veterinary, chemicals and health-care industries.

Starboard Value is responsible for managing approximately $6.2 Billion in assets according to reports through the first quarter 2020. Smith founded the New York-based hedge firm Starboard Value in 2011 from Ramius Investments.

— CNBC’s Jesse Pound contributed reporting.

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