Sedo falters, forcing United Internet to multimillion depreciation

The domain parking provider Sedo currently has to contend with plummeting revenues in the marketing of parked domains. Therefore Sedo Holding AG now had to write off 57.1 million euros of goodwill. According to Ad-Hoc Communication depreciation was explicitly required by a considerably more negative expectations when domain parking business. While Sedo in the first half of 2011 was able to put 20.1 million euros, the sales fell in the first half of 2012 to only 16.5 million euros.

This is also the majority owner of United Internet, which holds 79.45% of shares in Sedo . Even United Internet will therefore need due to the consolidation of the Sedo-figures in the financial statements identify extraordinary impairment losses of € 46.3 million.

Even when also belong mostly to United Internet affiliate network affilinet there are problems, why affilinet for the French offshoot France additional € 3.2 million to be amortized over the Sedo Holding AG.

Where do the problems with parking?

The problem of Sedo and most other domain parking providers is the extreme dependence on Google, because Google is usually the only display supplier. Google apparently sees no future in the domain parking more and put his own “Adsense for Domains” service in March 2012 (we reported ). Google also banned in October 2011, all external domain parking partners using Google ads (Sedo, Name drive , and more), their domains continue to park via URL forwarding ( for news on this ).

The reason for Google’s gradual withdrawal from the domain parking Business could be that many advertisers explicitly exclude their campaigns on AdWords for any domain parking websites because of their bad performance. Google should tighten the screws in the future, many are Sedo and other domain parking provider probably have to contend with even more problems.

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