GoDaddy surges 11% after FT reports takeover bid by Gen Digital

Investing.com  -- Shares of GoDaddy (NYSE: GDDY) rocketed 11% Thursday and were briefly halted for volatility after the Financial Times reported that cybersecurity titan Gen Digital (NASDAQ: GEN) made a preliminary takeover approach. Shares of Gen Digital slipped 7% on the news.

The approach highlights an ambitious move by Gen Digital to diversify beyond its core security and privacy footprint. Formed by the 2022 merger of NortonLifeLock and Avast, the $15.7 billion conglomerate oversees a heavily consolidated portfolio of consumer brands, including Norton 360, LifeLock, CCleaner, and ReputationDefender.

Absorbing the $12.2 billion GoDaddy would hand Gen Digital immediate access to a prime customer base of more than 20 million small businesses, creators, and entrepreneurs. Crucially, GoDaddy manages approximately 81 million web domains—representing roughly one-fifth of all registered domains globally—offering immense cross-selling potential for web infrastructure and security bundle deals.

Discussions between the two companies remain at an early stage, and specific financial terms have not been disclosed.