Member Info for G_G_G

New thread for DIS valuation, which they appear to be looking at for divestment given the 'multiple approaches', and comment about being worth materially more than our current MCap.

Repeated

I looked into the sale of the Domains business for NameCheap to CVC and Google's Domains to SquareSpace.

Breakdown as follows:

- NameCheap t/o for $1.5bn (inc Debt).

- Circa 30m Domains.

- NameCheap Revenue = circa $400m

- Valuation multiple = 3.77x Revenue

- Google t/o for $180m

- Circa 10m Domains.

- Google Revenue = circa $140m (Analysts estimate - No listed number)

- Valuation multiple = 1.25x Revenue

Team Internet Group:

- Circa 7m Domains - Unsure due to .Co and other wins.

- Revenue = $210m

- Valuation:

- 1.25x Revenue (Low-end) = $262.5m

- 3.77x Revenue (High-end) = $792m

The high end is obviously crazy numbers and we would have sold by now if we could get even half that value. The low-end looks more realistic, and sets a reasonable expectation. Not Disclosed* but analysts have mentioned that because Google Domains was primarily a strategic, low-cost service for Google (often selling domains at or near wholesale cost to encourage use of Google Workspace), its profitability (EBITDA) may have been very low or potentially even negative for a stand-alone business.

Based on above, I would hope they are looking to sell for the Google multiple at a minimum, which is 80p and roughly 12x Adj EBITDA. It may seem a bit crazy given the current share price, but we're talking US funds/companies as buyers, and there have been multiple approaches, so leverage in negotiations. The additional share / scale that TIG would provide, alongside pricing power to their existing business, would make this attractive to Squarespace, GoDaddy, and CVC. It does feel as though 70-80p could be easily achieved.

Open to discussion. Can anyone place the multiple for DIS valuation provided by our House Clowns (Brokers)?

No worries unhooked. I think the most oimportant thing is the sort of valuation we can get for DIS.

Others, what's the valuation multiple being placed on DIS by the House Clowns (Brokers)?

I looked into the sale of the Domains business for NameCheap to CVC and Google's Domains to SquareSpace.

Breakdown as follows:

- NameCheap t/o for $1.5bn (inc Debt).

- Circa 30m Domains.

- NameCheap Revenue = circa $400m

- Valuation multiple = 3.77x Revenue

- Google t/o for $180m

- Circa 10m Domains.

- Google Revenue = circa $140m (Analysts estimate - No listed number)

- Valuation multiple = 1.25x Revenue

Team Internet Group:

- Circa 7m Domains - Unsure due to .Co and other wins.

- Revenue = $210m

- Valuation:

- 1.25x Revenue (Low-end) = $262.5m

- 3.77x Revenue (High-end) = $792m

The high end is obviously crazy numbers and we would have sold by now if we could get even half that value. The low-end looks more realistic, and sets a reasonable expectation. Not Disclosed* but analysts have mentioned that because Google Domains was primarily a strategic, low-cost service for Google (often selling domains at or near wholesale cost to encourage use of Google Workspace), its profitability (EBITDA) may have been very low or potentially even negative for a stand-alone business.

Based on above, I would hope they are looking to sell for the Google multiple at a minimum, which is 80p and roughly 12x Adj EBITDA. It may seem a bit crazy given the current share price, but we're talking US funds/companies as buyers, and there have been multiple approaches, so leverage in negotiations. The additional share / scale that TIG would provide, alongside pricing power to their existing business, would make this attractive to Squarespace, GoDaddy, and CVC. It does feel as though 70-80p could be easily achieved.

What a bunch of c@nts. These clowns could have mentioned this weeks ago, given it's a massive downgrade to Adj EBITDA. They also could have announced the 'strategic review' over 6 months ago. I have included a breakdown of the segments and my workings. The thing that stands out the most is obviously the Search division. From what I can tell, they are currently adding nothing to annual Adj EBITDA in H2. This makes the business worth next to nothing unless they can demonstrate in the coming months that a scale-up is possible. And even then, what would they get as a multiple...? If possible, my preference would be to take this segment and dump it for $25-30m to use on the debt pile.

On a positive note, the only good part of this RNS is what Lukee has pointed out - "The Board is confident that the DIS business alone could command a valuation materially exceeding the Company's current market capitalisation".

The other hugely good thing is that the major shareholders are going to be aligned on this sale, and with us. It turns out they're not looking at a cheap t/o, and want out as well, which means they will drive a hard bargain on our behalf. And, given this world has huge concentration, I would think one of the big boys will be interested in taking a good chunk of market share to increase their base and exposure in the segment. Again, this should enable us to get a good multiple. I think we need to look at EBITDA multiples for DIS businesses to get a good grip on things, but from memory, a reasonable multiple to work off is 10-12x, especially since this segment is in growth (albeit modest). The immediate market share gain is what I think bigger fish will be interested in achieving.

It would be good to hear other thoughts on the above.

On the 10-12x multiples, one is looking at circa $220-250m valuation or 67p-77p valuation. The rest of the business is predominantly Comparison value, at say 4-5x and Search at 2-3x. Taking the midpoints for multiples (4.5x & 2.5x) and for Full Year guidance (12m & 9m), you get $54m (Comparison) and $22.5m (Search), or circa 23.5p.

Midpoints for total sum of parts = 90p-£1. Adjustment required for $85-90m debt, worth circa 27p. The total value of the sum of parts accounting for debt is 63-73p.

The above feels like a good starting point for discussion. I'm completely open to challenge on my workings. I'll try to dig out our conversation on the recent DIS take-over multiples and read across for us. From memory, it's fairly aligned with the above. The only great thing from today's absolute disaster RNS on guidance is that the major shareholders will be driving for maximum value gain imo.

Breakdown of H1 / Full-Year:

- DIS (H1 $10.7m) / Full Year $21-22m = YoY growth. H1vH2 flat.

- Comparison (H1 $5.4m) / Full Year $11-13m = YoY 20% decline. H1vH2 modest growth (max 5-10%).

- Search (H1 $8.5m) / Full Year $8-10m = YoY destruction. H2 is generating nothing from legacy AFD and RSOC

It doesn't matter if it's algo's, market sentiment, or an investor offloading etc. The point of those emails is to clearly state to the board how they are failing in their fiduciary duties to support the company valuation. If they believe the market has 'got it wrong', then they should be out saying as much, as often as possible, rather than jetting around to industry events and treating investors like mushrooms. And then we wouldn't have to worry about spamming them, because the entire market would know the investment thesis from them doing their f@cking jobs.

Lukee, well done on the extra LI post. I'm going to give them until Wednesday and then start sending direct messages to the Chairman and NEDs. I find it near impossible to believe that our three NEDs, who own half the company, are sitting back thinking there's nothing to worry about unless there is something going on in the b/g that they are aware of, and the market should be made aware of. Our Mcap is now approaching £100m. The level of negligence by the Executive Leadership Team in allowing the company value to spiral in this way whilst saying nothing, is simply astounding.

Lukee, can you confirm when you've sent the most recent email that I just re-surfaced to the listed addresses?

If something turns out to be rotten, then we need to document our concerns for any potential action against the Executive Leadership team.

I'm assuming you heard nothing from Michael on LI? Reckon the last move is to send messages via LI to the Chairman and 3 x major shareholder NEDs, plus the Oversight NED.

Truly astounding their lack of engagement and concern about the company's valuation.

(Part 2)

The Risk of a Lowball Bid

The optics surrounding this period of wilful silence, should the company become subject to a lowball bid (with the share price having dropped from the 60s to the mid-40s in a matter of weeks), will be clear. Inaction may be seen to have inadvertently facilitated such a bid, making it appear much more generous than the underlying fundamentals suggest.

We require a substantive response and proactive commitment to defend the company valuation. Should we not receive a satisfactory response or see decisive action from the company or yourselves immediately, we will be forced to take this matter up with the Non-Executive Directors (NEDs) regarding the Executive Leadership’s refusal to address the company valuation and their relevant duties attached to this.

We await your urgent response.

Regards,

A Deeply Concerned Shareholder.

Team Internet Group PLC

SEND THE EMAIL TO THE FOLLOWING ADDRESSES:

nick.cowles@zeuscapital.co.uk

james.edis@zeuscapital.co.uk

CC:

martin.surzyn@teaminternet.com

investors@teaminternet.com

investor@teaminternet.com

Subject: FORMAL DEMAND: IMMEDIATE ACTION ON VALUATION CRISIS & FAILURE TO UPHOLD FIDUCIARY DUTIES - Team Internet Group PLC

Dear Nick Cowles and James Edis,

cc: Investor Relations

We are addressing you directly as the NOMADs for Team Internet Group PLC, as you have a crucial role in maintaining market integrity and ensuring the company adheres to its governance and disclosure obligations. Given the Executive Leadership's continued silence and refusal to engage with concerned shareholders, we expect you to intervene and provide a substantive response where management has failed to do so.

This communication serves as YET ANOTHER URGENT DEMAND for immediate, proactive action to defend the company's valuation, which is currently at a historical low (inflation-adjusted), following a sharp and inexplicable decline.

Breach of Fiduciary Duties and Governance Code

As shareholders, we are calling on you to demand that the Executive Directors take immediate steps to address this situation in accordance with their Fiduciary Duties and the QCA Corporate Governance Code, which the company has formally adopted.

The continued silence from management is shocking, particularly as the company is in a turnaround phase and has provided only the flimsiest of guidance almost eight months ago, with no recent performance updates despite a near 30% crash in the share price from a level they previously stated fundamentally undervalued the business. This silence constitutes a clear breach of the following duties:

- Companies Act 2006, s. 172 (Duty to promote the success of the company):

Inaction that facilitates a dramatic and unjustified erosion of shareholder value directly undermines the financial success of the Group.

- QCA Code, Principle 10 (Communicate Performance):

Management is failing to maintain dialogue and provide the necessary performance information to ensure the market can achieve a fair valuation.

- QCA Code, Principle 2 (Meet Shareholder Needs):

The failure to respond to a single shareholder request for information further demonstrates a disregard for the fundamental need to preserve shareholder wealth and confidence.

The Unacceptable Stance on Valuation

We demand an immediate performance update (RNS). The assertion that 'nothing has changed with guidance at the moment, so no update is required' is not a defence, nor does it address the Executive’s responsibilities to defend the company’s valuation when it has dropped so severely and inexplicably over three weeks.

Furthermore, blaming the decline on "algorithmic trading" only highlights a wilful negligence of their duty to defend the share price by allowing it to be so easily manipulated on low volume, thus ensuring it remains at historical low

I was going to bypass them and go to the Chairman and NEDs. The problem at the moment is that we have ZERO information by which to value this business. Hence why everyone needs to send the email to start a paper trail that is calling out the Executive Leadership on their fiduciary responsibilities to support company valuation.

There is literally no good reason for them to be ignoring shareholders' concerns and not addressing a 30% decline in a matter of weeks, from an already depressed and undervalued share price (in their own words). If their argument is that they don't need to say anything because guidance still stands, well, that's exactly what they should be saying in the face of such a catastrophic decline. A simple, 'we know of no reason for the sp decline and maintain our guidance for the year' would suffice. It's also a dereliction of their fiduciary duties and QCA commitments to supporting company valuation by remaining quiet in the midst of a major seller, or should they want to use market sentiment or algo trading to explain the decline.

Something stinks. But no one knows what it is. Three things make sense given the above reasons could easily have been addressed by the statement I wrote, which is common practice by company mgt.

One, performance is poor. But to justify the current valuation, it would need to be borderline abysmal, and worse than $50m Adj EBITDA to justify this share price. This feels wholly unrealistic given H1 results. But this scenario would be absolutely apparent to them just 7 weeks from year-end, so they should have said something by now.

Two, another external shock to future performance e.g. Google AFD change. This would also need to be RNS'd, and I'd think we would have heard something by now as well.

Three, they are facilitating a lowball offer and allowing the sp to be manipulated by maintaining the information void?

crl, Lukee, Nav, StraightAIM, edo, mjharris, send the email.

I'll prepare something for LinkedIn messages to the Chairman and NEDs if we get nothing back by eop Wednesday.

Crl, have you sent the email? Please do asap and let me know once you have. Everyone else, please do the same (Lukee, Nav, AIM).

Following further silence, I think we then need to send messages via LinkedIn to the non-Exec Chairman and key NEDs (major shareholders, and Chair of the Audit / Risk Committee). As I've said, we need to start a paper trail because it's really not looking good from any angle. We need to shine a big light on this, so having a number of us calling on the Executive Leadership Team to adhere to their fiduciary duties and the QCA code will help in the event that something rotten ends up happening.

Quite astounding they will talk about the .Co win, and fly around speaking at events, but then completely ignore the current value destruction and shareholder calls for them to address it, which is effectively asking them to do their jobs.

SEND THE EMAIL FOLKS and let me know once done. If we can get half a dozen sent today / tomorrow then we can wait until Wednesday for a response, before addressing what appears to be wilful neglect wrt supporting company value with the Chairman and NEDs.

Edo, have you sent the email?

Guys this has gotten ridiculous. The company valuation is now over 30% lower than 1 month ago, whilst mgt sits and does nothing to protect its valuation.

If you guys have a LinkedIn account, then our non-Exec Chairman is on the site.

As for NEDs, I think they should come next, in particular, Royde, Siffrin, and Dayani, who own over 40% of the company. The other NED I think worth emailing / messaging is Marie Juliette France Holive: Non-Executive Director (and Chair of the Audit & Risk Committee).

Let's send the email today / tomorrow, and see if the NOMADs or the company make any statement, so we can at least state that a number of investors have been reaching out to IR, NOMADs, and have received no response whatsoever, let alone a satisfactory explanation for the share price decline and their lack of action in supporting the company valuation in a period of turnaround.

If Mgt can attend and give speeches at industry events, then they clearly have the time to address their shareholders who have seen their wealth decimated in the past 12 months, with another big chunk happening in the past 3 weeks. Either 1) something is rotten, and they are continuing to sit on it, 2) they are still confident in hitting guidance but cannot be @ssed stating as much, 3) there is a lowball bid being kicked around, and they will claim either ignorance, or some type of legal non-disclosure whilst the algo's drive down the sp to facilitate the derisory offer.

Send the email to the addresses listed and let me know once done.

Thanks BB. Others, can you please log when you have sent the email.

On the 'blow-by-blow' account of the turnaround. They can easily state 'there is no reason for the sp decline and they remain confident in hitting guidance', without providing a breakdown of performance. This would have killed the decline in its tracks. So why are they staying queit? There is literally no excuse given their duties to shareholders, and to maintain an orderly market, and support company valuation, for them to remain quiet when the sp has crashed by 30% from levels they described as undervalued. That is why this exact argument is addressed in the email, alongside 'algo manipulation'.

They have clear duties, which they are in breach of, including their adopted QCA Code. Either trading is completely f@cked (and we're on track for less than $50m Adj EBITDA), or there is a lowball bid being facilitated. Much easier to sell the % increase and 14-Day MDA, 30-MDA, etc when the sp is in the 40's. They would absolutely know if guidance is going to be reached in 7 weeks from now. So why not state 'we're confident' or downgrade now, even by dropping the lower end by $5m to give themselves leeway. It would need to be a catastrophic miss to explain the sp being down here.

As for debt levels, even if they reach $50m Adj EBITDA over the next 2 years, our Net Debt will be sitting under $50m or a ratio of 1.

It's absolutely f@cking mind-boggling negligence in supporting our valuation. There is no way that any investor can make an informed decision, which is a complete dereliction of their duties.

SEND THE EMAILS GUYS. Next up will be Iain McDonald (non-Exec Chairman) and then the NEDs.

Is that for real Stas? Surely not. They couldn't possibly crash the share price to historic lows and then replace their 'bonus' share with a 50% discount on record lows...?

Guys, it's of paramount importance to our investment that you send these emails. The company's inaction and complete lack of disclosure to shareholders after this recent sp collapse from levels they have stated under-valued the company, is absolutely extraordinary. It's mind-boggling negligence.

SEND THE EMAIL TO THE FOLLOWING ADDRESSES:

nick.cowles@zeuscapital.co.uk

james.edis@zeuscapital.co.uk

CC:

martin.surzyn@teaminternet.com

investors@teaminternet.com

investor@teaminternet.com

Next are the NEDs. I'll try to find their details. The Executive Leadership team are in breach of so duties to shareholders, and it's unforgivable that they are remaining silent in the face of shareholder requests and a further collapse in the valuation of the company.

(Part 2)

The Risk of a Lowball Bid

The optics surrounding this period of wilful silence, should the company become subject to a lowball bid (with the share price having dropped from the 60s to the mid-40s in a matter of weeks), will be clear. Inaction may be seen to have inadvertently facilitated such a bid, making it appear much more generous than the underlying fundamentals suggest.

We require a substantive response and proactive commitment to defend the company valuation. Should we not receive a satisfactory response or see decisive action from the company or yourselves immediately, we will be forced to take this matter up with the Non-Executive Directors (NEDs) regarding the Executive Leadership’s refusal to address the company valuation and their relevant duties attached to this.

We await your urgent response.

Regards,

A Deeply Concerned Shareholder.

Team Internet Group PLC

Subject: FORMAL DEMAND: IMMEDIATE ACTION ON VALUATION CRISIS & FAILURE TO UPHOLD FIDUCIARY DUTIES - Team Internet Group PLC

Dear Nick Cowles and James Edis,

cc: Investor Relations

We are addressing you directly as the NOMADs for Team Internet Group PLC, as you have a crucial role in maintaining market integrity and ensuring the company adheres to its governance and disclosure obligations. Given the Executive Leadership's continued silence and refusal to engage with concerned shareholders, we expect you to intervene and provide a substantive response where management has failed to do so.

This communication serves as YET ANOTHER URGENT DEMAND for immediate, proactive action to defend the company's valuation, which is currently at a historical low (inflation-adjusted), following a sharp and inexplicable decline.

Breach of Fiduciary Duties and Governance Code

As shareholders, we are calling on you to demand that the Executive Directors take immediate steps to address this situation in accordance with their Fiduciary Duties and the QCA Corporate Governance Code, which the company has formally adopted.

The continued silence from management is shocking, particularly as the company is in a turnaround phase and has provided only the flimsiest of guidance almost eight months ago, with no recent performance updates despite a near 30% crash in the share price from a level they previously stated fundamentally undervalued the business. This silence constitutes a clear breach of the following duties:

- Companies Act 2006, s. 172 (Duty to promote the success of the company):

Inaction that facilitates a dramatic and unjustified erosion of shareholder value directly undermines the financial success of the Group.

- QCA Code, Principle 10 (Communicate Performance):

Management is failing to maintain dialogue and provide the necessary performance information to ensure the market can achieve a fair valuation.

- QCA Code, Principle 2 (Meet Shareholder Needs):

The failure to respond to a single shareholder request for information further demonstrates a disregard for the fundamental need to preserve shareholder wealth and confidence.

The Unacceptable Stance on Valuation

We demand an immediate performance update (RNS). The assertion that 'nothing has changed with guidance at the moment, so no update is required' is not a defence, nor does it address the Executive’s responsibilities to defend the company’s valuation when it has dropped so severely and inexplicably over three weeks.

Furthermore, blaming the decline on "algorithmic trading" only highlights a wilful negligence of their duty to defend the share price by allowing it to be so easily manipulated on low volume, thus ensuring it remains at historical lows.

Guys,

I think it's time to send the email copy I pulled together the other day to the NOMAD contacts listed below. I'll follow this post with some updated copy to forward, as this has become quite appalling. And they are 100% in breach of their fiduciary duties, and their duties wrt to the QCA Code. It's quite mind-boggling negligence to create an information black hole when the company is in turnaround, and now at it's lowest valuation in history (inflation adjusted). We have dropped 30% in a little over 3 weeks on that back of nothing. Or at least, seemingly nothing. Let's all commit to sending these emails to the NOMAD. And, if there is continued silence from the company, then I'll do some digging on contact details for the NEDs. And, how to log this with the FCA. We need a paper trail that shines a light on mgt's wilful breach of their duties to shareholders, just in case something comes up in the near future to screw us completely.

Emails at Zeus as follows:

nick.cowles@zeuscapital.co.uk

james.edis@zeuscapital.co.uk

CC:

martin.surzyn@teaminternet.com

investors@teaminternet.com

investor@teaminternet.com

Aye, what exactly did Discord call for from Lyin Paul? That he does a 'one in, one out' on the fat bod? Wow, really holding him to account.

Also, what is the deal Calamity Baay is cutting for mgt purchasing shares? No-one seems to have an answer - is it 'buy one, get one free' or is that incoreect...?

well one useless clown out of the circus. just need the chief clown to be removed.

sirtradesalot, apologies for not coming back to you - it's easy to miss a question amongst the l2, 'i've bought more', and ramping ****e you normally post go back through my long posting history and you'll see that i have averaged down consistently from over 30p and given the reason as to why. a reminder for your gnat memory is the only way anyone will make money here in the next 12 months is for calamity baay to actually get somethings right, and have an average below 16p. i have called all of my trades up to 1.65m at 17.8p and received 150k in the recent raise he called 2.5 months early to pay for all his f@ck ups. you do the math, and i'm at 1.8m and circa 17.2p. so close to 2m, with an average not quite at the debenture mega-raise. and the whole 'he has 5 accounts', and 'log on log off' garbage really does show the measure of you as a b@ll****artist. trades and talks ramping b@llocks and when called out by multiple posters, deflects to say they are the same person. the idea that i'm sitting here posting under aliases and adopting a completely different posting style for each account doesn't even make sense. but whatever helps you to keep a lid on your trading.

i see john27 is only interested in softballs and will only call for an egm if calamity baay literally f@cks up every other thing of value this year with casc 5 and a delayed central well. still doesn't want to list what 'failure' looks like for central production i.e. two things that matter most. probably doesn't want to put too much pressure on calamity baay and the need to call for his head. still nothing from the circus clowns, and we go past mid-november this week... what an absolute ****show.

Hear! Hear! Stas.