Earlier this week, IONOS announced its intention to sell its Sedo unit, a decision driven by significant changes in Google’s advertising strategies that have negatively affected Sedo’s revenue. This turbulence was particularly evident in the third quarter (Q3) of 2025, where Sedo’s revenue plummeted by 66% compared to the previous year, dropping from €80.2 million in Q3 2024 to just €27.5 million.
At the start of the year, it seemed Sedo was successfully adapting from Google’s AdSense for Domains program to the new Related Ads for Content (RSOC) model. However, two key factors in the most recent quarter disrupted this momentum. Firstly, Google removed its last batch of advertisers from the Domains program, which had previously provided a substantial source of income. Unlike other parking companies that reported minor revenue declines, Sedo’s reliance on the Domains product—particularly for non-arbitrage domains parked on its platform—proved to be a vulnerability.
Secondly, Google implemented policy changes to the RSOC product, further impacting Sedo’s revenue generation. The combined effect of these changes caused a steep decline in earnings, leaving the company nearly at break-even on an EBITDA basis, thanks to its stable domain aftermarket segment. However, with several of the Google changes occurring mid-quarter, Sedo’s performance may have worsened even beyond the reported figures.
By selling the Sedo business, IONOS aims to isolate the detrimental impacts of this downturn from its overall financial reporting, categorizing the losses under a “Discontinued Operations” section. This move underscores the challenges that Sedo is facing in a changing digital advertising landscape, which has significant implications for its future viability.
Welcome to DediRock, your trusted partner in high-performance hosting solutions. At DediRock, we specialize in providing dedicated servers, VPS hosting, and cloud services tailored to meet the unique needs of businesses and individuals alike. Our mission is to deliver reliable, scalable, and secure hosting solutions that empower our clients to achieve their digital goals. With a commitment to exceptional customer support, cutting-edge technology, and robust infrastructure, DediRock stands out as a leader in the hosting industry. Join us and experience the difference that dedicated service and unwavering reliability can make for your online presence. Launch our website.