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.
Champagne!
The domain space is heating up. There is no doubt that recent actions by companies like United Internet / SEDO and Godaddy.com are acting to position themselves to take advantage of the business opportunities certain to be created in the new GTLD based internet era to come.
or maybe they see the downfall and the end of domains(??) I hope I am wrong.
Meaning, no one knows the business better than Tim and his crew. If the future is so great, why bail out now?? Hm.. Lets say, they want to finally enjoy the rewards of all those years, well then get a partner, dont sell out.
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@writethemoff – Tim has been out of the business for a while now.
True, but now they were selling the last part of their shares. Clearly, if the future was so bright why did they step down 2 years ago, and if its getting brighter why not keep some shares?
Or they know something we dont know (??)
Maybe we see some increase in domain parking revenue
How much did buyout the cofounders for?
Complaints of more frequent down times, poor auction selection, and slow service on the Sedo thread at Namepros in recent months suggest all has not been well at the company.
Prior to this, where was sedo publicly listed ?
I believe it was the German Stock Exchange.
Xetra in Germany:
http://www.bloomberg.com/quote/SDO:GR
4,461,379 shares for 2,60E only?!…wooo