Moscow: The division of Russian technology giant Yandex was officially completed on Monday, with a consortium of Russian investors acquiring most of Yandex’s businesses in a transaction totaling approximately $5.4 billion in cash and shares.
The split signifies the end of foreign ownership in Yandex, often referred to as “Russia’s Google,” potentially consolidating Kremlin influence over the Russian internet landscape. This also marks the largest corporate exit from Russia since the country’s invasion of Ukraine more than two years ago.
Yandex’s Dutch parent company, Yandex NV, confirmed the sale of its remaining 28% stake in the second phase of the deal, receiving $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,” YNV stated.
Founded during the late 1990s dotcom boom, Yandex revolutionized Russian technology and became a dominant force in search engines, advertising, ride-hailing, e-commerce, and other online services. YNV will retain and develop four AI-focused businesses under the Nebius Group brand, covering cloud services, data labeling, self-driving technology, and education.
Following the completion of the sale, YNV will cease using Yandex brands in Russia by July 31st.
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The deal, culminating after approximately two years of negotiations, overcame challenges including Kremlin demands for substantial discounts on foreign asset sales, nationalization risks, and protests against the war from Yandex co-founder Arkady Volozh. After the lifting of EU sanctions in March, Volozh is slated to return as CEO of Nebius, leading the rebranded group free from its Russian ties.
John Boynton, Chairman of YNV, expressed gratitude to the company’s 1,300 employees, particularly acknowledging Vadim Marchuk for leading the deal team. “All connections with Russia have now been severed,” Boynton affirmed.
Attention now turns to the future of YNV’s Nasdaq listing, where trading has been suspended for Western shareholders holding stakes.
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“The Class A shares received as consideration will be held in treasury, pending use under our equity incentive plans and for further financing purposes,” YNV disclosed. Following the deal’s closure, YNV reported a total of 199 million outstanding Class A and Class B ordinary shares.
Trading under the new ticker YDEX on the Russian market will commence on July 24. However, the consortium faces legal challenges from approximately 100 shareholders who allege discriminatory terms in the share exchange process imposed by the trustee, Solid Management.
