Yandex, the NASDAQ-listed Russian Internet giant, is acquiring K50. According to businesss daily Kommersant, this is a full acquisition and an exit for the company’s shareholders, which include the venture fund AddVenture Capital and the management, reports East-West Digital News (EWDN).
As a result of the deal, K50 will be able to scale up its business, while Yandex advertisers will use digital channels even more efficiently, a Yandex representative said in an exchange with Kommersant.
The amount of the deal was not disclosed, five years after the company was valued at $5mn when AddVenture invested in it.
In 2019 advertising accounted for two thirds of Yandex’s revenues, generating some 34bn rubles ($533mn at the average exchange rate of that year).
In the second quarter of 2020, however, these revenues decreased by 15% year on year, according to company results cited by ICT Moscow.
This article first appeared in East-West Digital News here, a partner of bne IntelliNews