United Internet, a German internet services company, has purchased a controlling stake in Sedo Holding, owner of affiliate network, affilinet.
Sedo’s founders sold nearly four and a half million shares to United at a cost of €2.6 per share, increasing the German ISP’s stake in the company to 96.05%.
In a news release to analysts, United stated it would commence a ‘squeeze-out’ process over the coming weeks, suggesting the company may not be content with its current shareholding.
The news comes as little surprise. While affilinet has generally produced fairly healthy financial statements, Sedo as a whole has struggled because of its poor performing domain-selling business.
United, which reported profits of €175 million in August, revealed how it would be integrating affilinet and Sedo’s domain marketing business more closely with the strategy of its own company.