United Internet’s Bold Move: Aiming for 90% Control of 1&1 AG

In a decisive move that underscores its strategic ambitions, United Internet has announced plans to significantly increase its stake in 1&1 AG, a leading telecommunications provider in Germany. The company has launched a public acquisition offer, proposing to purchase up to 16.25 million 1&1 AG shares at a price of €18.50 per share. This bold offer aims to elevate United Internet’s current holding from approximately 81% to a commanding 90% of 1&1 AG’s capital.

Strategic Implications

This aggressive expansion strategy by United Internet is not just about increasing market share; it’s a calculated move to consolidate its position in the telecommunications sector. By bringing 1&1 AG under tighter control, United Internet is poised to streamline operations, enhance service offerings, and potentially unlock new revenue streams. The acquisition offer, priced at €18.50 per share, represents a significant premium over the closing price of €15.76 on May 12, 2025, signaling United Internet’s commitment to this strategic acquisition.

Market Reaction and Financial Health

The announcement has sent ripples through the market, with 1&1 AG’s shares experiencing fluctuations. Prior to the announcement, the shares were trading at €15.54, reflecting a recent decline. However, the acquisition offer could potentially stabilize the stock, given the premium offered and the strategic benefits of the acquisition.

1&1 AG, with a market capitalization of €2.799 billion as of May 12, 2025, has demonstrated resilience in the competitive telecommunications landscape. The company’s diverse portfolio, including broadband and mobile internet services, positions it as a formidable player in the industry. The acquisition by United Internet could further bolster this position, leveraging synergies between the two entities.

Dividend Considerations

For investors, the acquisition news comes on the heels of 1&1 AG’s recent dividend announcement. At the company’s annual general meeting on May 14, 2025, a dividend of €0.05 per share was declared for the year 2024. This modest dividend reflects the company’s strategy to reinvest profits into growth initiatives, a stance that may continue under United Internet’s increased ownership.

Conclusion

United Internet’s move to acquire a larger stake in 1&1 AG is a testament to its strategic vision and commitment to strengthening its foothold in the telecommunications sector. By potentially increasing its ownership to 90%, United Internet is not only consolidating its market position but also setting the stage for enhanced operational efficiencies and expanded service offerings. As the acquisition process unfolds, stakeholders will be keenly watching the impact on 1&1 AG’s financial health and market performance.