Yandex NV (NASDAQ:YNDX), often dubbed 'Russia’s Google', has announced the sale of its operations in the country for around US$5.2 billion in a cash-and-share transaction.
The tech giant, which is listed on the Nasdaq and headquartered in the Netherlands, is selling to Russian investors but is expected to spin off some of its international operations first.
Following protracted negotiations with the Russian government, Yandex will see its core Russian business, accounting for the lion's share of its revenue, transition to a consortium led by domestic investors, including figures and entities like Lukoil.
Before Russia invaded Ukraine, Yandex had plans to become an international tech player and even boasted a US$30 billion valuation at its peak.
However, soon after the war broke out, many employees fled the country, while investors and partners from other countries attempted to distance themselves.
Now, the deal “reflects a mandatory discount of at least 50 per cent” to the “fair value” of the company, which is a rule implemented by the Russian government regarding exits of international companies.
Dmitry Peskov, president Vladimir Putin’s spokesman, said to Russian news outlet Interfax: “Yandex is one of the economy’s national champions in high tech and one of the largest companies. It’s important for us that the company continues to work in the country.”
Yandex is expected to remain private and independent from the Russian government and management will keep control of major decisions and strategies for the company.