About AZ Disruptors

AZ Disruptors is a startup incubator for software companies.

For the latest Arizona Startups and Arizona Tech News, visit AZTechBeat.com.

Subscribe to News

RSS Feed Follow AZ Disruptors on TwitterTwitter

Or you can subscribe by email.

Email:

You will get a confirmation email.

Twitter
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.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (1)

This is great news for Arizona.

I run a small business (originally from Seattle). I think that software companies in WA should definitely take a look at what Arizona has to offer. There's a business friendly climate in Arizona as well as a lot of lifestyle benefits (e.g. great weather, lots to do, amenities, inexpensive housing, etc).

The fact that Paul Allen's investment firm (Vulcan w/ $2 billion in assets) purchased a building in Tempe last year says something too.

I had a chance to attend AZ Disruptors Pitch Day @ AxoSoft and just wanted to say thanks. I really got "pumped up" as an entrepreneur watching all the software company pitches and meeting everyone. Good work!

Greg

June 28, 2011 | Unregistered CommenterGreg Carlson
Comments for this entry have been disabled. Additional comments may not be added to this entry at this time.