Team Internet looking to break up
The return of CentralNic? Team Internet this week announced that it is seeking to break up the company, selling off its various divisions to different buyers.
The move follows devastating changes to Google’s advertising services, which led to 200 layoffs and a $140 million drop in revenue in the first half of this year.
“We are in active discussions regarding the divestment or formation of strategic partnerships for substantially all parts of the business in separate transactions,” the company said in a statement to the markets.
The company said it has already received “a number of inbound approaches”, adding that “discussions are most advanced” for the sale of its Domains, Identity & Software segment, which includes its registries and registrars.
It’s not clear whether we’re talking about potential industry consolidation or another private equity deal. Google’s move scuppered the planned sale of Team Internet as a whole to a PE group in March.
Google turned off its Adsense for Domains this year, making domain monetization substantially more difficult. It’s been replaced by Related Search on Content, which requires content to function.
Team Internet said that other Google policies designed to improve the quality of advertising have also slowed down its transition to the new model. It’s looking at ways it can diversify its revenue sources.
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Pushing the narrative that this is all Google’s fault simply does not make sense.
Whoever buys whatever piece is decent, better look under the hood. All the good people that grew the domains part of the business left and they are losing customers daily.
Sounds like a fire sale as a direct result of really incompetent leadership.