Team Internet Group responds to Google parking changes, states buyout is off

Firm tries to quantify the hit it will take from Adsense for Domains changes.

Team Internet Group (AIM: TIG, OTCQX: TIGXF) issued an update today addressing Google’s changes to domain parking and announcing that a possible buyout will not happen.

On the Google (NASDAQ: GOOG) front, the firm expects at least short-term pain from search giant’s plans to opt all advertisers out of domain parking. Only advertisers that specifically opt in will have ads shown on parked domains.

In its 2023 annual note, Team Internet noted that it grossed $566.9 million in revenue from Google. The business declined in 2024, and the total Google contribution will be lower for that year. We don’t have Team Internet’s 2024 annual note yet.

In today’s notice, the firm didn’t break out how much gross revenue will be impacted. Instead, it discussed how its gross profit will change. Of the $91 million gross profit the search segment delivered in 2024, Google Adsense for Domains generated $72 million.

The search segment had $537 million total revenue last year. If we extrapolate, it suggests that Adsense for Domains accounted for regarding $425 million revenue.

The remainder of search revenue comes from zero-click, display and video advertising, and Google’s Related Search on Content (RSOC) program.

RSOC provides ad units with keywords related to a site’s topic. Users who click on the terms are presented with search results from the site’s content along with related ads.

Team Internet believes it can expand its use of RSOC to replace some revenue it will lose from Adsense for Domains.

The firm’s best estimate for the search segment’s Adjusted EBITDA in 2025 is between $20-$25 million, down from $57 million in 2024.

In other news, Team Internet stated the one remaining investor that was interested in acquiring the firm no longer intends to make an buyout offer.