Who Owns 1&1 Company?

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Who owns 1&1 AG?

Understanding the ownership structure of a company is crucial for grasping its strategic direction and market influence. A significant development in the German telecommunications sector occurred in May 2025 when United Internet AG, the long-time majority owner, initiated a voluntary public acquisition offer for 1&1 AG. This action highlights the importance of knowing who controls such a key market player.

1&1 AG, based in Montabaur, Germany, is a prominent telecommunications provider offering a wide range of services including high-speed broadband, mobile communications, and cloud solutions. The company's journey began in 1988 when founder Ralph Dommermuth established it as 1&1 EDV Marketing GmbH, initially focusing on marketing services for software companies before shifting to internet services in 1996 with the ambition to become a leading internet specialist.

The question of who owns 1&1 is central to understanding its operational framework and future trajectory. As of the close of 2024, 1&1 AG had amassed 16.39 million customer contracts and reported revenues of €4,064.3 million for the 2024 financial year. This performance solidified its standing in the German market. Notably, the company is pioneering Europe's first fully virtualized 5G mobile network utilizing Open RAN technology, a testament to its innovative approach. Delving into the 1&1 company ownership reveals a history of strategic consolidation, with United Internet AG playing a pivotal role. The company's public shareholdings and the influence of its major shareholders are key factors in its governance. Exploring the 1&1 history of ownership provides valuable context for its current market position and future endeavors. Understanding the relationship between United Internet AG and 1&1 AG is essential for grasping the full picture of 1&1 internet ownership structure. The 1&1 BCG Matrix analysis can further illuminate its strategic positioning within its service offerings.

The foundation of 1&1 company ownership traces back to 1988 with the establishment of 1&1 EDV Marketing GmbH in Montabaur, Germany. This venture was spearheaded by German entrepreneur Ralph Dommermuth, who was born in 1963. Initially, the company focused on providing systematized marketing services, catering to smaller software providers before expanding its client base to include major corporations like IBM, Compaq, and Deutsche Telekom.

As the digital landscape evolved, Dommermuth recognized the burgeoning potential of the internet. Around 1996, he initiated a strategic pivot, shifting the company's core activities from third-party marketing to developing its own internet services and cultivating direct customer relationships. This foresight laid the groundwork for what would eventually become a significant player in the European internet sector.

A pivotal moment in the 1&1 history occurred in March 1998 with its Initial Public Offering (IPO) on the Frankfurt Stock Exchange. This made 1&1 the first internet company to be publicly listed, a move that facilitated capital infusion for further expansion. The funds raised were instrumental in acquiring stakes in other IT companies, including GMX and Schlund + Partner AG. By the year 2000, Ralph Dommermuth orchestrated a significant restructuring, transforming 1&1 into United Internet AG, solidifying its position as a leading European internet specialist.

Founding Entrepreneur

Ralph Dommermuth, born in 1963, founded 1&1 EDV Marketing GmbH in 1988.

Initial Business Focus

The company began by offering marketing services to software providers.

Strategic Shift

Around 1996, the focus shifted to building proprietary internet services.

Public Listing

1&1 became the first internet company listed on the Frankfurt Stock Exchange in March 1998.

Expansion Through Acquisition

IPO proceeds funded investments in companies like GMX and Schlund + Partner AG.

Corporate Restructuring

In 2000, 1&1 was restructured into United Internet AG.

While specific details regarding the initial equity distribution among co-founders or early angel investors are not publicly available, Ralph Dommermuth's consistent leadership from the inception of 1&1 EDV Marketing GmbH in 1988 through his roles as CEO of United Internet AG and 1&1 AG underscores his foundational and sustained control over the company's trajectory. This enduring influence is a key aspect of the 1&1 company ownership structure. Understanding this early phase is crucial for grasping the Growth Strategy of 1&1.

Key Ownership Aspects

Ralph Dommermuth's continuous leadership signifies his foundational control over 1&1 and its parent company, United Internet AG.

• Founded in 1988 by Ralph Dommermuth.
• Initial focus on marketing services, later shifting to internet services.
• First internet company to IPO on the Frankfurt Stock Exchange in 1998.
• Restructured into United Internet AG in 2000.
• Dommermuth's enduring leadership highlights his significant ownership stake and control.

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The ownership structure of 1&1 AG has seen significant consolidation, largely driven by its strategic alignment with United Internet AG. A pivotal moment in this evolution was United Internet AG securing a majority stake in 1&1 AG, a move that has profoundly shaped the latter's trajectory.

This close relationship means that understanding who owns 1&1 requires looking at the ownership of its parent company. The 1&1 company ownership is heavily influenced by United Internet AG's substantial shareholding.

Ralph Dommermuth, the visionary behind 1&1 and the current CEO of United Internet AG, wields considerable influence over 1&1 AG. His indirect ownership through United Internet AG, where he held approximately 54.37% of the share capital and 48.94% of the share capital and 54.37% of the voting rights as of June 2025, underscores his pivotal role. This deep connection is a key aspect of the 1&1 internet ownership structure, impacting strategic decisions, particularly concerning significant investments like the 5G mobile network expansion. Understanding who is the parent company of 1&1 is crucial to grasping this dynamic.

Key Shareholders and Influence

The 1&1 company shareholders reveal a concentrated ownership structure, with United Internet AG as the dominant entity. This concentration of power influences the company's strategic direction.

• United Internet AG holds a majority stake, controlling 78.32% of 1&1 AG as of late 2024.
• Ralph Dommermuth, founder and CEO of United Internet AG, exerts significant indirect control.
• Institutional investors, including Vanguard and Dimensional Funds, also hold substantial stakes.
• This ownership dynamic is critical for understanding the Competitors Landscape of 1&1.

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The corporate governance of 1&1 AG is structured around a dual-board system, comprising a Management Board and a Supervisory Board. The Management Board is responsible for the company's daily operations. As of early 2025, Ralph Dommermuth serves as the CEO and Chairman of the Management Board. Sascha D'Avis is appointed as the CFO, effective January 1, 2025, taking over from Markus Huhn, who stepped down from the 1&1 AG Management Board on December 31, 2024, but continues his role at United Internet AG. Alessandro Nava holds the position of COO.

The Supervisory Board plays a crucial oversight role, with members including Chairman Kurt Dobitsch, Deputy Chair Norbert Lang, Matthias Baldermann, Vlasios Choulidis, Friedrich Joussen, and Christine Schöneweis. Ralph Dommermuth's leadership extends to being the CEO of United Internet AG and Chairman of the Supervisory Board of 1&1 AG, which fosters a strong strategic alignment between the two entities. This structure is designed to ensure responsible management and control, contributing to sustainable value creation, in line with the German Corporate Governance Code (DCGK).

United Internet AG holds a significant majority stake in 1&1 AG, which as of May 2025, stood at 80.81%. This substantial ownership directly translates into considerable voting power, effectively granting United Internet AG outsized control over the company's strategic direction and decisions. The ongoing voluntary public acquisition offer by United Internet AG, aiming to increase its stake to up to 90%, further underscores its commitment to solidifying its voting majority. This move is particularly important for the significant investments needed to expand the 1&1 mobile network, ensuring a stable and clear shareholder structure to support these ambitious growth plans. Understanding the Marketing Strategy of 1&1 is also key to appreciating how this ownership structure influences its market approach.

Voting Power and Ownership Control

United Internet AG's majority ownership of 1&1 AG significantly influences the company's voting power and strategic direction. This control is crucial for major investments and long-term planning.

• United Internet AG owned 80.81% of 1&1 AG as of May 2025.
• A voluntary public acquisition offer aims to increase this stake to up to 90%.
• This majority stake grants substantial voting power to United Internet AG.
• The structure ensures alignment for critical mobile network expansion projects.

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Over the last three to five years, the ownership landscape of 1&1 AG has seen a significant trend towards consolidation, with its parent company, United Internet AG, progressively increasing its control. By May 2025, United Internet AG held approximately 80.81% of 1&1 AG's shares. This consolidation was further emphasized by a voluntary public acquisition offer announced on May 16, 2025, by United Internet AG. The offer aimed to acquire up to an additional 9.19% of 1&1 AG's share capital at €18.50 per share, with the offer document published on June 5, 2025. This strategic move is intended to elevate United Internet's stake to as much as 90%, thereby solidifying its majority voting power and creating a stable shareholder base to support future investments, particularly in the ongoing development of the 1&1 mobile network.

United Internet AG has indicated its intention to maintain a free float of at least 10% to ensure continued stock exchange trading, with no immediate plans for delisting or a squeeze-out of minority shareholders. In terms of leadership, Sascha D'Avis took over as the Chief Financial Officer (CFO) of 1&1 AG starting January 1, 2025, succeeding Markus Huhn, who transitioned from his role on December 31, 2024, but continues to serve on the Management Board of United Internet AG. The 2024 financial year presented some headwinds for 1&1 AG, with revenues experiencing a slight decrease of 0.8% to €4,064.3 million, partly attributed to a temporary mobile network outage in May 2024. Despite this, the Access operating segment demonstrated robust performance, with EBITDA growing by 8.9% to €856.1 million in 2024. The company also saw an increase in customer contracts, adding 130,000 new contracts to reach a total of 16.39 million by the end of 2024. Reflecting broader market confidence in the telecommunications sector, institutional ownership has also increased, with 49 institutional owners holding 3,348,640 shares as of July 11, 2025.

The financial performance in 2024 for 1&1 AG showed a slight revenue dip of 0.8% to €4,064.3 million, influenced by operational disruptions. However, the Access segment reported a strong EBITDA increase of 8.9%, reaching €856.1 million, and customer contracts grew to 16.39 million. This period also saw a leadership change with Sascha D'Avis appointed as CFO effective January 1, 2025. Understanding the revenue streams and business model of 1&1 is crucial to appreciating these financial shifts and the company's operational resilience.

United Internet AG's Growing Influence

United Internet AG has been actively increasing its stake in 1&1 AG, aiming for up to 90% ownership. This strategic move is designed to bolster control and facilitate future investments, particularly in network expansion.

Financial Performance Snapshot 2024

In 2024, 1&1 AG reported revenues of €4,064.3 million, a 0.8% decrease. The Access segment, however, saw EBITDA rise by 8.9% to €856.1 million, indicating segment-specific strength.

Leadership and Operational Changes

Sascha D'Avis became the new CFO of 1&1 AG on January 1, 2025. This leadership transition occurred as Markus Huhn stepped down from the CFO role but remained on the Management Board of United Internet AG.

Market Confidence and Institutional Investment

As of July 11, 2025, 1&1 AG had 49 institutional owners holding over 3.3 million shares. This growing institutional interest suggests increasing confidence in the company's market position and future prospects.

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