Yandex, often dubbed “Russia’s Google,” has finalized its split, with a Russian consortium acquiring the majority of its businesses in a $5.4 billion deal. The deal marks the end of foreign ownership in the tech giant, potentially tightening the Kremlin’s grip on Russia’s internet space.
The Dutch parent company, Yandex NV, sold its remaining 28% stake, receiving $2.8 billion in cash and shares. Four AI-focused businesses are being retained and will operate under the newly formed Nebius Group, led by Yandex co-founder Arkady Volozh.
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The transaction comes after two years of negotiations and various setbacks, including Kremlin demands for discounts and nationalization risks. Trading of Yandex shares in Russia under the new ticker YDEX will begin on July 24.
However, a lawsuit filed by around 100 shareholders against the consortium’s trustee for discriminatory share exchange terms continues. The future of Yandex NV’s Nasdaq listing also remains uncertain, with Western shareholders holding suspended stakes.
This split marks a significant shift in the Russian tech landscape, signifying the end of an era of foreign influence and potentially increasing the Kremlin’s control over the internet.