Gen Digital shares fell 12% to $23.07 on Sept. 24 after reports of a preliminary $12 billion approach to buy GoDaddy. Investors questioned how Gen would fund the deal while carrying heavy debt, and whether its cybersecurity business fits with GoDaddy’s web services.
Gen would need to borrow more, issue shares or use both to finance a purchase, according to the article. GoDaddy has more than 20 million small-business and individual customers and manages roughly 81 million domains globally, a potential audience for Gen’s security and identity products. The article says both companies generate steady cash that could help service debt.
Risks cited include the challenges of combining web hosting and domain registration with endpoint-protection software, as well as adding borrowing to Gen’s already debt-heavy finances. The approach remains at an early stage and could change or collapse. Insider Monkey’s database showed 44 hedge funds held GEN in the second quarter of 2026, down from 48 in the first quarter, before reports of the approach.
