IONOS Group SE recently announced its decision to sell the Sedo domain sales and monetization business. The CEO, Achim Weiß, stated that while the AdTech space is filled with potential, the company cannot dedicate sufficient management focus to it long-term. This shift will allow IONOS to concentrate on its core business operations.
Sedo had initially seen a positive start to the year, but its ad monetization sector has faced significant challenges. It was a major player in traffic arbitrage, a practice where traffic is purchased and directed to parked web pages to generate profit. However, after Google discontinued its AdSense for Domains program, the industry has undergone considerable disruption.
Similarly, the Team Internet Group, another prominent traffic arbitrage company, laid off 200 employees earlier this year after experiencing a significant revenue drop. The company is also contemplating the sale of portions of its business.
Reports suggest that Sedo had been quietly exploring potential buyers for parts of its operation, particularly because its domain aftermarket side has been largely overlooked. This creates a unique opportunity for any buyer looking to expand into that sector.
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