Leveraged Buyout (LBO) city, baby! Prediction: a firm like KKR or Carlyle buys G... | Hacker News

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luffy on Sept 11, 2010 | parent | context | favorite | on: Godaddy.com up for sale. Could fetch $1 Billion

Leveraged Buyout (LBO) city, baby!

Prediction: a firm like KKR or Carlyle buys GoDaddy and borrows a bunch of money (> $10B ?) on the cheap, and then uses GoDaddy's revenue to service the debt.

loganfrederick on Sept 11, 2010 [–]

Why would KKR need to borrow $10B? They could get away with $1B, and probably less than that if they use some cash.

brc on Sept 11, 2010 | [–]

That's easy to answer : they don't like using their own cash.

The returns are infinite if you don't use any of your own money.

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