Freenet Sale Called Off for the Time Being

A sale of telecommunications provider Freenet AG is off the table for the time being. After reviewing the strategy, which included both a complete sale and a split into individual parts, Freenet decided to remain independent, the company announced in Büdelsdorf.

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The company listed in the TecDAX share index is now examining the establishment of a holding- structure that provides for the spin-off of the DSL and portal businesses. Under pressure from major investors, Freenet AG put itself up for sale in the summer and, after some hesitation, did not rule out a split either. However, new owners would have to be found for all parts – fixed line, mobile communications, web hosting – CEO Eckhard Spoerr had demanded. United Internet and Drillisch had positioned themselves as buyers; through a joint holding company, they control one fifth of Freenet.

While talks with United Internet about a takeover of the DSL business failed, Spoerr agreed exclusive negotiations with Drillisch about the mobile-phone division. These have now also been ended, Freenet announced. Drillisch spokesman Oliver Keil declined to comment. «I cannot say anything about that.»

Freenet AG was created in the spring through the merger of mobilcom and the old freenet.de AG. CEO Spoerr intends to benefit from the convergence of the mobile-phone and fixed-line businesses through the merger. This strategy will now be pursued «consistently», it said. At the end of September, Freenet had 5.45 million mobile-phone customers and 1.27 million broadband customers.