Historic $5.4 Billion Deal Splits Yandex's Assets Amid Geopolitical Tensions

A $5.4 billion deal finalized on Monday splits the assets of Russian tech giant Yandex, marking the end of its foreign ownership. The Dutch parent company Yandex NV sold the remaining 28% stake, finalizing the largest corporate exit from Russia since the Ukraine invasion. Four AI businesses will continue under Nebius Group.

A deal to split the assets of Russian technology company Yandex was finalized on Monday, with a Russian consortium of investors buying the bulk of Yandex's businesses in a cash and shares deal worth approximately $5.4 billion. This marks the end of foreign ownership in the company, often referred to as 'Russia's Google,' potentially increasing Kremlin control over the internet space in Russia. This also finalizes the largest corporate exit from Russia since its invasion of Ukraine over two years ago.

Yandex's Dutch parent company, Yandex NV (YNV), announced it had sold its remaining 28% minority stake as part of the deal's second closing, 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.

Yandex has been a trailblazer for Russian technology since the dotcom boom of the late 1990s, dominating markets in search and advertising, ride-hailing, e-commerce, and other online services. However, four AI-focused businesses—cloud, data labeling, self-driving cars, and education technology—will continue to operate under the new Nebius Group name, as confirmed by YNV.

(With inputs from agencies.)