Sedo will no longer be a separate, publicly traded company.
United Internet AG has raised its stake in Sedo Holding to 96.05% after buying out the co-founders’ shares at a price of 2.60 euros per share. United Internet plans to integrate Sedo Holding’s affiliate and domain business into its overall business. The company will initiate a “squeeze-out process” at Sedo over the coming weeks.
Tim Schumacher, one of the founders of Sedo, released this statement:
This is a good step for Sedo. Taking Sedo private will remove the unnecessary costs and distraction of being a public company, and will thus allow more intensive focus on the core: customers and products.
For me and my co-founders personally, by selling our remaining shares, we will close an important chapter of our life. Thank you again to everyone who was – and especially to everyone who still is – part of the Sedo story, as customer, partner or team member!
Technically, the company will still be “public” as United Internet is public. However, it will no longer have the separate costs of being a public company. Being a public company can be a distraction and competitive disadvantage, especially when the business faces significant headwinds in the domain name industry.
Having just looked through United Internet’s six month report, it appears that the level of detail about Sedo’s business previously available will not be available going forward.