Gen Digital Makes Preliminary Takeover Offer for GoDaddy in Deal That Would Expand It Beyond Cybersecurity

Gen Digital, the $15.7 billion cybersecurity company behind Norton and Avast, has made a preliminary takeover approach for GoDaddy, the web domain and small-business software provider with a market value of approximately $12.2 billion, according to a report from the Financial Times. Talks are described as early-stage with no guarantee a deal will be reached.

GoDaddy serves more than 20 million customers and manages roughly 81 million domains, representing about one-fifth of all registered domains globally. A successful acquisition would mark a significant strategic expansion for Gen Digital, moving it well beyond its core cybersecurity and privacy products into web domains, website building and small-business software.

GoDaddy shares surged approximately 11% on the news. Gen Digital stock fell on the day, slipping enough to push its dividend yield above the 2% mark, with shares touching as low as $23.55, based on its annualized quarterly dividend of $0.50 per share. U.S. markets closed mixed on Thursday, with Gen Digital among the session's laggards.