Team Internet purchases content firm for $41.8 million
Deal will reduce Team Internet’s reliance on Google for monetization.
Team Internet Group (AIM: TIG) disclosed today it is acquiring Shinez I.O. Ltd for an enterprise value of $41.8 million.
Shinez runs a network of 40 sites, counting TravelerDreams.com and OurFashionTrends.com.
On a cursory review, the content seems rather thin and at risk of Google search results changes. You can read articles like “Here’s How to Get Red Lipstick to Stay on All Night” and “The Best State Parks for Nature Lovers in Pennsylvania.”
That stated, it appears Shinez generates traffic outside of Google, counting on social media.
Team Internet states the deal will reduce its reliance on Google for ad monetization. On the ad side of its business, Google accounted for $566.9 million of $657.1 million of revenue last year.
It’s the largest buyout the firm has made in some time, as the firm has focused on using its capital for share buybacks over the past couple of years.
The price represents a 4x multiple on Shinez’s 10.4 million adjusted EBITDA for 2023. Additional contingent consideration could reach $12.3 million.
