Group considers selling domain businesses — Team Internet
Firm considering strategic options for its entire business.
Team Internet Group (AIM: TIG, OTCQX: TIGXF) is undergoing a strategic review, with active discussions for “divestment or formation of strategic partnerships for substantially all parts of the business in separate transactions,” the firm disclosed today.
The firm stated discussions are most advanced for the Domains, Identity & Software segment. This includes domain name registrars such as Moniker and RegistryGate, as well as a registry services provider business.
Team Internet believes it might be able to sell its domains business alone for more than the firm’s current market capitalization.
The move comes following Google upended Team Internet’s search arbitrage business by effectively shuttering Google AdSense for Domains. That led to a 36% revenue decrease in the first half of this year and 200 layoffs.
Search arbitrage continues to face uphill challenges as Google introduces fresh policies for its Related Search for Content (RSOC) product.
Two investment groups made proposals to acquire Team Internet Group earlier this year, but neither came to fruition.
Shares in TIG are up 15% today, but are down regarding 50% this year.
