Hey, want to buy IPO stock in unprofitable, debt-ridden GoDaddy

Carnival barker

The primary people making money on the GoDaddy IPO today will be those selling stock and investment banksters getting fees. GoDaddy has been around for 18 years, has never made money, and, thanks to the vultures who took it private, has a mountain of debt. The vultures will sell their stock to you, walk away with a tidy profit, and I’m guessing, won’t much care what happens to GoDaddy after that.

Another blemish on its financials, however, is its mountain of debt, consisting of $1.4 billion. This, of course, is a function of the company being bought out by private equity. GDDY will be using at least some of the proceeds of the IPO to pay down some of the debt it agreed to take on as part of the $2.5 billion buy-out in 2011.

Thus, much of the IPO money will go for paying down debt, not on the company itself. Such a deal.

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