Team Internet Share Chat (TIG)

I asked my AI friend for a take on the interview and this is what came up. Take what you want from it, or not.

So Michael Riedl (TIG’s CEO) popped up on Proactive earlier, and while Proactive isn’t exactly CNBC, the interview was way more interesting than the usual “we’re excited about our strategy” fluff.

Main points:

1. He basically confirmed the DIS sale is real and competitive

Riedl said they’ve had several competing bids for the Domain Services business. Not “interest”. Not “conversations”. Actual bids.

And then he casually dropped the line that the offers are strong enough that TIG could wipe out all its debt if they accept one.

That’s the closest you’ll ever get to a CEO saying: “Yes, the sale is happening and the price is good.”

2. He made a big deal about TIG being “AI resilient”

He went out of his way to explain that TIG isn’t relying on big AI models that hallucinate or break every time Google sneezes.

Instead, they use “pre manufactured AI results” — basically structured, predictable outputs that advertisers like because they don’t go rogue.

Translation: “Our revenue isn’t going to evaporate because ChatGPT or Gemini changes something.” This is exactly what a buyer of the Search or Comparison business wants to hear.

3. The Comparison business is quietly scaling outside Germany

France got a special mention as a strong early market. That’s important because it shows the Comparison segment isn’t just a one country niche — it’s something that can be rolled out internationally. Buyers pay more for businesses that travel.

4. Notice what he didn’t talk about

No talk of acquisitions. No talk of long term group strategy. No “platform vision”. No “synergies”.

Just:

• asset performance

• stability

• resilience

• monetisation

• and the DIS sale

That’s not how a CEO talks if he’s planning to run TIG as a single group for the next five years. That’s how a CEO talks when he’s preparing assets for sale.

5. The whole thing felt like a subtle “heads up”

Not a pump. Not hype. Just a gentle tap on the glass: “We’re in the final stages of something meaningful. Don’t be surprised when the RNS drops.”

Proactive is a small channel, but the people who need to see this — bidders, analysts, institutions — absolutely will.

6. Bottom line

The interview didn’t tell us anything crazy or new, but it confirmed a lot of what people have been suspecting:

• DIS sale is advanced

• multiple bidders exist

• the price looks strong

• debt could be wiped out

• the remaining business is stable and AI resilient

• international growth is real

• the break up strategy is alive and well

For a 37p stock, that’s… not nothing.

Hope you find this useful but remember, not advice, DYOR etc. GLA

Https://www.proactiveinvestors.co.uk/companies/news/1092558/team-internet-advances-ai-strategy-and-eyes-global-growth-opportunities.html

Maybe, maybe not, 170k UT just after you posted. We live in hope!

Looks like our recent buyer is done filling their boots. Can only hope for some positive news now re performance and DIS sale. Fingers crossed.

Accounts due end of month with hopefully an RNS re disposal of DIS. Someone has been building a position for the last few days in anticipation. If accounts are in line with previous statements and DIS goes for a decent price this will rerate and quickly.

Some big buys this week....makes me wonder if we are drawing nearer to something.....maybe month end?

£70k trade went through at the close today. Don't think I've seen that in a while!

I can’t see it dropping below 30p, if it does, I will be buying more.

Market needs clarity on the RCF debt refinancing. Can't see why the company would trade at this valuation otherwise.

But you're right the market doesn't believe the board. Shinez situation, last years half year results and then an update a month or so after. Disaster.

That's around $160m. If DIS is sold it will be more than that.

Market doesn't believe it and them.

Showing the ability to refinance the debt without a DIS sale will be important IMO

Longer it takes the more likely a lower sell price and each will be holding off to see what the "winner" offers so they can just about trump it.

A disaster and wouldn't be surprise if it comes in at the recent price + 35%.

Who can have any confidence in this management to optimise especially if they are offered a cushy number to transfer into?

Are they selling all their holding?

Edison Research today reaffirm their SOTP valuation of 63-76p ps, with a DIS valuation of c£150m (61p per share - higher than current EV of £147m). They conclude that the market is valuing Search and Comparison at zero, more or less, despite generating a forecast £20m EBITDA this year.

I’m intrigued that Pareto have been chosen to sort the fixed income meetings. Why Pareto? Couple of thoughts: (a) Pareto are Scandinavian, as are Verdane, who thought about bidding for TIG about 16 months ago. Coincidence? (b) fixed income work is often a front door to more strategic actions e.g. disposal activity, take-private activity and private equity engagement.

Hopefully the answer is that the DIS sale in getting close to a resolution and/or something more fundamental is afoot. Or maybe they really are just going to front some meetings??

And a lot of overhead resistance today. Would there be mileage in larger holders taking their losses against tax then buying the bonds issued? So much resistance sub 34p today.

And very under water.

No sign Kestrel are agitating just dull and passive.

Max himself has a personal 7% holding too and sits on the board.

He surely will want to maximise any sale.

I asked Co-Pilot the same thing a while back (SP was 41p) and got this:

Estimated Kestrel Weighted Average Cost: ~75–85p per share

This aligns with:

Their long‑term holding behaviour/accumulation pattern/lack of selling at 120–140p/willingness to add at 50–70p/refusal to sell at 41p

🔥 3. Are they underwater? Yes — significantly.

At today’s ~41p:

They are likely 40–50% down on their position.

Yet they are not selling./They are not reducing./They are not hedging./They are not signalling concern.

This is not normal behaviour for a fund unless the thesis is intact.

I took comfort - probably wrongly - from the last sentence that the thesis (TIG is materially undervalued) is still valid. Guess we'll know when (or if) a sale comes to fruition!

RNS, runt for invome investors. Still no deal n or guarantee of one.

Lukee, I sent you a private message

Edoinvestor, I do wonder if they plan to sell all 3 divisions to different parties, but all at the same time. Which seems rather complicated so probably not happening. But nearly 6 months ago now... "We are in active discussions regarding the divestment or formation of strategic partnerships for substantially all parts of the business in separate transactions, each expected to highlight the distinct value of its market-leading platforms. "

But if such is happening or similar, these parties could go for hostile takeover at the current share price. Unless they have already signed some type of agreement while discussions/negotiations are ongoing.

I've put together a simple sum-of-the-parts using FY2026 estimated EBITDA by division and net debt of $88M as reported in the March trading update.

On the divisional EBITDA I've used two scenarios — a conservative case (DIS $23M, Comparison $12M, Search $7M) and a slightly more optimistic case (DIS $25M, Comparison $14M, Search $9M) — both well within what the business has demonstrated it can deliver.

On multiples I've applied a bear/base/bull range: DIS at 7x/9x/11x, Comparison at 5x/6x/8x, and Search at 0x/2x/4x — the last of which is already pricing Search as worthless in the bear case.

Even in the most conservative scenario — lowest EBITDA estimates, distressed multiples across all three divisions, Search at zero — the implied share price is 40p. We are currently trading at 32p.

In other words, at the current price you are below the bear case on forward numbers, applying deeply distressed multiples to a business where DIS just reported 10% EBITDA growth and 155% cash conversion. The base case across both EBITDA scenarios implies 62-72p. The bull case 87p-101p.

The board has publicly stated any DIS disposal would deliver value materially in excess of the current market cap. Under Takeover Panel rules they are obliged to correct that statement if it were no longer true. They haven't.

The market is pricing illiquidity and forced sellers. Not fundamentals.

Investors@teaminternet.com

Investor@teaminternet.com

CCing

martin.surzyn@teaminternet.com

william.green@teaminternet.com

And in the end the usual UT

TACO trade ongoing

Only the dis deal with price above €200m and cash in shareholders' pockets can save us. the AIM market is completely broke

It's crazy edoinvestor.

Yet we keep getting destroyed by these uncrossing trades that take us down even further. Ridiculous.

At these prices, the market is essentially saying DIS value is around 150$m (7x on EBITDA equal to $21m), Comparison is around 60$m (5x on EBITDA equal to $12m) and Search is equal to 0. If you deduct net debt you get current marke cap. Crazy

I actually think it might make sense to keep DIS until they can somewhat stabilize Search. At least it's cash flow positive and helping with overall debt reduction.

Let's all just wait to find out. Clearly the market has lost confidence in management hence giving no benefit of the doubt or trusting anything they say. The price action tells the story.

I think you're all a little too hopeful on the DIS business. Who is going to pay 10x on a business that has already maxed out its profit margins, made its savings in OPEX and has declined 7% in the last year. It is a solid business but the upside is low and will need to be turned around

In my view the floor foor DIS sale is $200 m i.e. 1x ev/sales. everything below $200m would be a shame

Zeus’ guidance for 2026 is very low growth - revenue $491.4 vs $481.9, with a small further drop in Search offsetting modest growth in DIS and 20% growth in comparison. Adj EBITDA $45.8 vs $42.7. They see a little stronger growth in 2027 but not massive.

Using the same SOTP methodology their current 91p per share valuation would grow to 101p by year end and 118p end-2027.

I’m slightly dubious as to the potential sale prize for DIS. “Exceeding market cap” could be as little as $140m compared to the $250m included in Zeus SOTP estimate (=12xEBITDA). Even with a much lower sale price this still looks cheap, however. Given that, I’m back in with a modest sum here even though I’m not excited about the company long term. I see much more exciting things happening in the US with various AI-fuelled ad-tech/martech companies.

It’s because the only part of the business still making any money is in decline (7% reduction in domain years is big) and is being propped up by price increases and staff cuts which have probably hit their limit.

How is this company only worth 98m. With EBITDA of 42m p/e of just over 2. I'm very underwater here , can't think why sentiment is so bad. Looks like ship has stabilised.

Don't just look for manipulation and blame the market etc. Shinez is an example of why this is so badly rated.

Who paid a price for that decision? We did. Not management.

Responsibility for market perception lands at their door.

No use Royde being frustrated if he doesn't agitate for change and Kestrel have left it a bit late!!!

Sleeping at the wheel, the lot of them.

Do you mean there average? The IPO over 10 years ago was at 55p. They have been paying much more than that over the past few years. Gemini says there average is over 80p.

Thank u luke. Do you think Kestrel's pmc is around 70/80?

I can't post the entire thing as within the email at the bottom "This E-mail is confidential. It may also be legally privileged" lol. I'm already down enough on TIG to get sued.

But as I said, it is very similar to what was sent in the letter to Kestrel fund holders. Which is publicly available if you search on Google "email notice to shareholders tisegroup kestrel".

But mentioned about being a shareholder for 10 years, repeated the board believing the valuation of DIS being worth more than the market cap and that they are working hard. I could feel he was frustrated reading it, which is the only new thing I came out of reading it, which was nice to hear.... As I am also very frustrated haha.

Lukee can you report what Royde said to you?

Lukee can you report what Royde said to you?

There's definitely a seller here, with a daily drip for the past couple of weeks. Not big volume though.

The board seems pretty quiet of late. Feels like everyone has lost a bit of hope!

We'll end up seeing a hostile takeover. 12 month high is about to be 70p.

I do not believe they know what they are doing.

They are doing nothing to instil any confidence at all that they know what they are doing.

Bit of selling pressure today....as has been the case for the past few days. No buyers out there it seems. No wonder when we have radio silence and a strategic review that seems indefinite.

As if the management don't want to see a resolution to the poor valuation via sell-offs because their gravy train will come to an end. Will they ever find jobs like these again?

It seems the order was cancelled

Looks like a sell but some pretty big buys since.

210k trade at 8.43 A.M.

I think anyone who wants to buy in volume is looking at 50-52p, which is what we saw yesterday. I expect there will be a bit more buying pressure in two weeks as folks start to take a position. AIMHO GLA

Definitely range-bound until we get a meaningful update on the strategic review.

Might be fitting in a skiing trip too & looking for his next position.

You are kidding me. A failed CEO jetting around at Davos when the sp is on its knees, Search is f@cked, and we're now trying to sell the family jewels to pay for his and ExCo f@ck ups. Please tell me this is a joke. If not it pretty much sums up the mgt team and him in particular.

Michael is at Davos... Hopefully finds some venture capitalists with too much money on there hands.

Big old spread. Suggests we're not too far away. I'm going for a DIS sale price of £180-190m. And a resulting sp of 70-75p.

Seems like we will not leave the 40's

FY25 adjusted EBITDA expected to exceed consensus forecasts Team Internet has issued a trading update for FY25 announcing that results for FY25 are expected to be at the top end of the analyst consensus range of $40m$43m adjusted EBITDA. This follows strong momentum in the final quarter of 2025, despite challenging market conditions. Zeus forecast adjusted EBITDA for FY25 of $42.3m, so the top end of the consensus range ($43.0m) is c. 2% ahead of our estimates. We leave our forecasts unchanged until the more comprehensive trading update that is expected in due course. We are encouraged by the accelerated momentum in the Comparison and the DIS divisions, alongside continued cost discipline. The Group has also confirmed that discussions in relation to the disposal of the DIS segment is progressing well, confirming a high level of strategic interest in its assets. The sale of DIS could lead to a material paydown of debt and/or return of substantial capital to shareholders. We have repeatedly argued that, on a sum of the parts (SoTP) basis, Team Internet is significantly undervalued. Our unchanged SoTP valuation estimate is 91.1p per share, which implies 93% upside on last night’s closing price.

Has anyone got access to the Zeus note issued this morning? If so, can you paste the summary in here?

Positive that the jewel in the crown is performing better than expected when in negotiations for a sale. A hint that comparison may be turning favourably, but no mention of Search. At least it's a half attempt to put a floor under the share price, which is better than nothing.

"The Board remains confident that any transaction would deliver a value-maximising outcome in excess of the Group's current market capitalisation."

GGG, Kestrel have to announce a reduction.

Also Kestrel announced 14th November 2025 Notice to Shareholders - "However, we still remain fully invested in some of our larger positions such as Redcentric, Team Internet Group plc (‘TIG’) and Pulsar Group plc (‘PULS’). As you would expect, we are highly engaged with and have representatives on the Boards of all these companies."

I can't see Kestral selling.

AI has given the best answer from my pov. States that it's likely an off-book trade between major funds. Suggests that Kestrel is the likely seller and Slater the likely buyer. Slater is a 'special situations' small cap value investor and likely looking at the break up value of the business, whilst Kestrel is potentially banking some cash with an interested party. This also likely explains the other large trades for circa 0.1% of issued shares. Doesn't believe there is a 'negative leak' as this sort of off-book trade wouldn't happen. Also, doesn't believe there's anything pointing toward a positive outcome being near. Just reshuffling and jostling for position.

I get my RNS info every morning from the horses mouth. Quick just change row to 500 rather than going through pages by page. Then/if asked press press private investor!

https://www.londonstockexchange.com/news?tab=news-explorer&period=daily&headlinestypes=1,2

GGG I always use Investegate to check for morning RNS news. LSE always a bit slow during the morning 7am rush it seems.

They must have built that extra 2.5m shares quite slowly over the past couple of weeks to avoid spiking the sp. Perhaps they were the ones who took us above 50p. Anything near/above 75p and I'll be happy to walk away having taken a beating, but still standing.

Annoying it's not reported here. Yes, looks like they have added almost 1% of the company, so around 2.5m shares. Quite a vote of confidence. I wonder how far away the 'strategic review' happens to be. Can't come quick enough for me.

Teaminternet dot com /rns-news/

There is no lack of poor management elsewhere but this bunch take the biscuit for own goals. How the CEO has survived is a mystery.

What on earth are you talking about? Lol

Good to see the sp slowly climbing in the low 100's now. Just need them to hit guidance and reaffirm modest growth in 2025 and we're off to the races. It will either be a t/o for 125p where we can cash out. Or the sp will get there on its own steam in the coming months. Next set of results are all important. GLA

Simplywall.st says fair value is 492p.

Just out of interest Dartron recently posted

"Interactive investor (via Morning star) shows fair value at 97p. I dont fully agree with that, but it shows what some people will think. Nearly all out now. "

Today Interactive investor (via Morning star) shows fair value at 128.2529p so have no idea where they get their valuations from.

i agree decay. an offer of 125p is a slap in the face, especially for lths who haven't averaged down. pe are c@nts, and never anything less. there is zero doubt that kestrel are involved with these bids. my biggest annoyance is i think the accepted bid will be one that satisfies kestrel and other funds interests in the roll-over. it's not a straight up cash offer, and no doubt kestrel and others have said they're fine with it providing they maintain (or even improve) their % ownership in the unlisted entity. because of this i think the 125p is the lesser likely element to be improved by a decent margin.

edison input (f'all) points to an ev:ebitda of 5.2 and pe of 7.1 on 2023 numbers. these are shockingly low, by any standards. the pe multiple will also go down providing they hit revised guidance. the ev:ebitda will likely stay around the mid 5's due to the debt they took on with the shinez ****show. for any t/o to be of a semi-reasonable value it should be looking at a minimum 40% higher i.e. ev:ebitda of circa 7.5x and pe around 10. whoever wins the bid can effectively pay down debt from what is being put toward bbs and dividends in just over 3 years, and that's without any further growth.

i do believe we'll get an improved offer, but imagine the cash option will be maybe 10% higher from current offerors, so 135-140p. this would allow most lths to exit with a profit (although small), and make people believe it was a good deal versus 125p. best chance of getting +150p is for another bidder to enter the fray once the company and major holders have indicated whether they're willing to accept 125p (or slightly higher). once they do this it's hard for them to row back on +150p.

anything below 150p is a steal. having said that i'd be happy with +135p at the moment. market is getting f@cked from all sides and having a big slug of cash at the ready could yield some very good returns in time (providing one times things well).

hopefully the company is pushing for improved offers on the pathetically low 125p. the fact these offers are identical says the company has told them about one another, or they are acting in concert. ridiculous to think they can land on the exact same numbers. aimho gla

God, sorry guys. I thought it was 208m and had no idea wtf was going on as it made no sense. This is what an 11-month old can do to your brain without any sleep :)

GGG are you reading it correctly?

It was just 208,135 shares moving from one Kestrel portfolio to another Kestrel portfolio is what it reads to me.

any thoughts on what has just happened? that's a **** tone of shares leaving kestrel, which is effectively 75% of the total issued shares. not sure how this is possible, unless all the other major holders had their shares locked into kestrel...? any thoughts on the significance of this?

# Trades 39

Vol. Sold 84,464

Sold Value £111.79k

Vol. Bought 102,483

Bought Value £66.65k

PE Ratio 6.757615

Earnings 7.021708

Dividend 3.00

Yield 6.322%

is this correct ?