Pursues antitrust claim, domain business sale on track — Team Internet
Firm hopes to get over £20 million from antitrust claim.
Team Internet Group (AIM: TIG, OTCQX: TIGXF) disclosed this stretch that it is pursuing a “substantial damages claim against a major technology firm” over anti-competitive behavior.
It stated a successful outcome could result in a recovery that is material in the context of the firm’s market capitalizastion, which right now stands at regarding GBP 100 million. Substantial is considered 20%, suggesting the firm hopes to recover £20 million or more.
While the firm did not name the technology firm, it’s most certainly Google. The European Union has issued a decision and €2.95 billion fine against Google for abusing dominant positions in publisher ad server and programmatic ad buying markets. Team Internet has been a major ad buyer and publisher over the years through its search arbitrage and domain parking business.
In a trading update, the firm stated:
The Group is pursuing a substantial damages claim against a major technology firm, arising from anti-competitive conduct established by a final regulatory decision, by which the Group was disadvantaged over an extended period. Following recent court judgments on similar claims, the Group believes that a successful outcome could result in a recovery that is material in the context of the Firm’s current market capitalisation. The outcome, timing and amount remain uncertain and, accordingly, no asset has been recognised. Further information will be given as appropriate.
Additionally, the firm stated it intends to come to a final decision on selling its domain name business in the first half of Q3. It states it has received offers in excess of £120 million, which is well above the firm’s entire market capitalization, and more than cover the firm’s outstanding debt.
The firm’s domain business includes registrars such as Key-Systems and Moniker, and domain registry services for TLDs such as .xyz.
The firm indicated there are multiple suitors.
