Yandex Search Engine Acquired in a $5.2 Billion Deal
In a major acquisition deal, Yandex, N.V., the Dutch parent company of the Yandex Group, has agreed to sell its Russian assets, including the popular Yandex search engine, for a staggering 475 billion rubles, equivalent to approximately $5.2 billion. This sale, which is still subject to regulatory and shareholder approval, marks a significant development in the search engine industry.
Rumors of the sale first surfaced in November, and now it seems that the deal is set to go through. The consortium that will be acquiring the assets includes members of the senior management team of Yandex’s Russian businesses, Russia-based PJSC Lukoil Oil Co., and Russian entrepreneurs Alexander Chachava, Pavel Prass, and Alexander Ryazanov.
The sale could have been even more lucrative if it weren’t for a “mandatory discount” imposed by the Russian Government. This rule dictates that any sale of Russian assets by parent companies incorporated in countries deemed “unfriendly” by Russia will be subject to a discount of at least 50 percent. As a member of the EU bloc that has imposed sanctions on Russia, the Netherlands falls into this “unfriendly” category.
The reason behind this significant sale can be traced back to Russia’s invasion of Ukraine in February 2022. Yandex faced exceptional challenges as a result, with Nasdaq suspending trading of its shares, sales of various divisions, and financial losses. This turmoil led to the decision to sell off its Russian assets.
Despite this change in ownership, Yandex management has assured its Russian employees that the company will remain independent. This news comes as a relief to many who rely on Yandex Search, often referred to as “the Google of Russia.” With over 60% of Russians using Yandex Search and it being the dominant advertising platform in the country, any potential changes to the search engine could have far-reaching implications for search marketers operating in or considering entering the Russian market.
The future of Yandex Search is uncertain, but it will undoubtedly be worth monitoring how this ownership change affects the platform. Search marketers will need to stay informed and adapt their strategies accordingly to ensure they can continue reaching their target audience effectively.
In conclusion, the acquisition of Yandex Search Engine for $5.2 billion marks a significant milestone in the search engine industry. The sale of Yandex’s Russian assets to a consortium involving senior management team members, Lukoil Oil Co., and Russian entrepreneurs is set to reshape the landscape of search in Russia. As Yandex Search remains a vital tool for millions of Russians and the dominant advertising platform in the country, any changes resulting from this ownership change will have a profound impact on search marketers. It will be essential to stay informed and prepared as the future of Yandex unfolds.
