Yandex’s Asset Split Finalized: A New Era for "Russia’s Google"
In a significant move marking the end of an era, the assets of the Russian technology giant Yandex have been divided, concluding a substantial split between its domestic and international operations. Announced on Monday, the deal sees a consortium of Russian investors purchasing most of Yandex’s businesses in a transaction valued at approximately $5.4 billion, putting an end to foreign ownership and solidifying Kremlin’s grip on the country’s internet space.
The agreement is notable as it finalizes the largest corporate exit from Russia since the nation launched its invasion of Ukraine over two years ago. Yandex, often referred to as "Russia’s Google," has been a cornerstone of Russian technology since its inception during the late 1990s dotcom boom. It quickly became a dominant force across various sectors including search and advertising, ride-hailing, e-commerce, and other online services.
The Details of the Deal
Yandex’s Dutch parent company Yandex NV (YNV) played a crucial role in the negotiations. The agreement saw YNV offloading its remaining minority 28% stake, yielding a sum of $2.8 billion in cash and 162.5 million YNV Class A shares. "With the second closing, YNV has received the agreed-upon purchase price and now fully disposed of its remaining interest in the Russian businesses," stated YNV.
With this transaction, YNV has officially completed its divestment from its Russian operations, paving the way for future developments under Yandex’s new Russian ownership.
The Future: Nebius Group and AI Ventures
Although the majority of Yandex’s operations will now operate under Russian control, Yandex NV retains four key AI-focused businesses. These include ventures in cloud computing, data labeling, self-driving cars, and educational technology. These retained sectors will be developed under a new entity dubbed the Nebius Group, indicating Yandex NV’s ongoing commitment to cutting-edge technology and innovation.
Complex Negotiations Amid Political Turmoil
The deal’s finalization is the result of nearly two years of intricate and challenging negotiations. Numerous obstacles were encountered including demands from the Kremlin for a discount of at least 50% on foreign asset sales, risks of nationalization, and an anti-war outburst from Yandex co-founder Arkady Volozh.
Following the completion of this landmark deal, YNV stated, “The Class A shares received as consideration will be held in treasury, pending use under our equity incentive plans and for further financing purposes.” Currently, Yandex NV boasts a total of 199 million outstanding Class A and Class B ordinary shares, now solely listed on Nasdaq, where trading has been paused.
Conclusion
This monumental split in Yandex highlights a crucial shift in ownership and control within the Russian technology landscape. As the nation faces increasing isolation on the global stage, the Kremlin’s influence over its digital territory appears set to deepen. Meanwhile, the Nebius Group indicates a determined effort by Yandex NV to continue advancing technological innovation outside of Russian boundaries.
For more information, visit Yandex’s official website.
By monitoring the evolution of this story, industry analysts and participants alike can gain a better understanding of the ongoing transformations within the Russian tech space and its broader implications on global technology and politics.
