Yandex Finally Splits: $5.4 Billion Deal Marks End of Foreign Ownership

A deal finalized on Monday splits Russian tech company Yandex, with a consortium buying most of its businesses. This $5.4 billion deal ends foreign ownership and strengthens Kremlin control over the internet. The Dutch parent company, YNV, sold its last 28% stake, while retaining AI-focused entities under the Nebius Group.

A landmark deal to split Russian technology giant Yandex was finalized on Monday, involving a consortium of Russian investors buying the majority of Yandex's businesses in a cash and shares transaction valued at approximately $5.4 billion. This development signifies the cessation of foreign ownership in Yandex, often regarded as "Russia's Google," and potentially increases Kremlin control over Russia's internet landscape. Additionally, it marks the most significant corporate exit from Russia since the invasion of Ukraine over two years ago.

Yandex's Dutch parent company, Yandex NV (YNV), announced that it sold its remaining 28% minority stake as part of the deal's second phase, receiving 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 purchase price and has fully disposed of its remaining interest in the Russian enterprises," the company stated.

Yandex spearheaded the Russian tech sector following its establishment during the late 1990s dotcom boom, eventually becoming a dominant player in fields such as search and advertising, ride-hailing, e-commerce, and various online services. Four AI-centric businesses focusing on cloud, data labelling, autonomous vehicles, and educational technology will remain under YNV and will be developed under the Nebius Group, according to the company. Trading in Russia under the new YDEX ticker is set to commence on July 24, as stated by YNV.

(With inputs from agencies.)