Well first of all it is unlikely to be a public auction. It will probably be a private one organized by a various investment banks.
And I think it does make some sense, especially in these days when private equity is so well developed. The stock market likes growing companies, and I am not sure whether they would like GoDaddy which seems to be reaching the limit to its growth. Also, the stockmarket does not like situations where the owner is cashing out, and much prefers companies that sell stock mostly to re-invest in their business. If Godaddy did an IPO, the owner would not be able to cash out immediately and would have to wait a while and sell his stock slowly and hope he does not cause a collapse in the price.
Private equity specializes in these situations (owners wanting to cash out, and companies that may have plateaued or are in decline), so it seems like a good choice.
And I think it does make some sense, especially in these days when private equity is so well developed. The stock market likes growing companies, and I am not sure whether they would like GoDaddy which seems to be reaching the limit to its growth. Also, the stockmarket does not like situations where the owner is cashing out, and much prefers companies that sell stock mostly to re-invest in their business. If Godaddy did an IPO, the owner would not be able to cash out immediately and would have to wait a while and sell his stock slowly and hope he does not cause a collapse in the price.
Private equity specializes in these situations (owners wanting to cash out, and companies that may have plateaued or are in decline), so it seems like a good choice.