The Dutch company Yandex N.V. completed the sale of its Russian stake for $5.4 billion, splitting the business into two separate entities. This led to the creation of a new company, Nebius Group, under the leadership of Arkady Volozh.
Separation of Yandex
Completion of the asset division agreement
The Netherlands Yandex N.V. and the Russian "Yandex" successfully completed the process of distribution of assets. The company from the Netherlands sold its minority share of 28% in favor of investors from Russia. As a result of this operation, Yandex N.V. received $2.8 billion in cash and 162.5 million Class A shares. The total value of the deal reached approximately $5.4 billion.
Structural changes and new directions
- The four key business areas remain under YNV control and will be developed under the Nebius Group brand. This includes Nebius AI cloud platform, data labeling service, driverless car development and education technology.
- YNV has committed to stop using Yandex trademarks by the end of July.
- The renewed Nebius Group will be headed by Arkady Volozh, former head and co-founder of Yandex.
- Volozh resigned as the head of Yandex after the introduction of sanctions by the European Union in 2022 due to accusations that the company spread Russian propaganda.
- The following year, he publicly condemned Russia's invasion of Ukraine. In March, the EU lifted sanctions against Volozh, and he now lives in Israel.
Background and consequences of the agreement
This agreement was the result of two years of long negotiations. In February 2024, it was announced that the company would be split into two parts: the Russian Yandex and the Dutch Yandex NV, which was previously the parent company of the entire holding.
Netherlands Yandex N.V. decided to sell all its Russian assets to a group of buyers. The sale process was planned to be carried out in two stages, while at least half of the price was to be paid in cash.
Upon completion of the transaction, YNV reported that the total number of Class A and Class B common shares outstanding is 199 million. Trading of Yandex shares on the Russian stock market under the new ticker YDEX will begin on July 24.
Glossary
- Yandex N.V. - a Dutch technology company, the former parent company of "Yandex"
- Nebius Group - a new company created after the separation of the assets of "Yandex"
- Arkady Volozh - Russian entrepreneur, co-founder of "Yandex"
- EU - European Union, intergovernmental association of 27 European countries
- Bloomberg is an American company specializing in financial information
Links
- Reuters on the completion of the Yandex N.V. deal.
- Bloomberg about the return of Volozh to the post of CEO
Answers to questions
What is the amount of the agreement between Yandex N.V. and Russian investors?
What businesses remain in the Nebius Group?
Who will lead the renewed Nebius Group?
When will Yandex shares start trading in Russia under the new ticker?
How long did the negotiations on the separation of Yandex assets last?
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Discussion of the topic – Yandex N.V. sells Russian business: $5.4 billion for a technological empire
The Dutch company Yandex N.V. completed the sale of its 28% stake in Russia's Yandex for $5.4 billion, including $2.8 billion in cash and $162.5 million in Class A shares.
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Oleksandr
Wow, Yandex finally sold its Russian share! I wonder how this will affect their services in Ukraine? 🤔
Sophie
Oleksandr, I think this could be a positive step. Perhaps now they will focus on the development of technology without political influence. Especially interesting about Nebius AI!
Giovanni
Sophie, I agree! Cloud AI platform Nebius AI sounds promising. I wonder how they plan to compete with giants like Google Cloud or AWS? 🚀
Marta
And I am more interested in what will happen to self-driving cars. This is such a cool technology! Can you imagine how it will change our lives? 🚗💨
Heinrich
Why do we need those self-driving cars? Only problems will be added on the roads. It would be better to be doing something useful than these fashionable frills.
Oleksandr
Heinrich, don't be such a pessimist! Technology evolves to improve our lives. And as for Volozh - I wonder how he will manage a company from Israel? 🇮🇱
Sophie
Oleksandr, this is a really interesting question. Perhaps remote control will help the company become more global and independent of Russian influence? 🌍
Giovanni
This $5.4 billion deal is a lot of money! I wonder how they will invest these funds in new projects. Maybe we'll see something revolutionary from Nebius Group? 💡💰