Yandex Needs More Money?
Russian top search engine, Yandex, which was founded in 1997, has made an outstanding progress in recent years. Despite constantly growing competition from both the local Rambler and the “global” Google, it has succeeded to increase its market share in 2010. According to Yandex report, for the first time in four years the engine’s share of the Russian search market exceeded 60 percent, reaching the 64% mark. Yandex has also launched its English version, officially “going global”, possibly intending to fight Google at its own ground.
Despite speculations about going public in 2008, Yandex cancelled the move at the last minute – possibly due to fluctuating economic conditions in both Russia, the US and Europe. Thus, the company is still privately owned, with about 24% being owned by the founders and workers (another 10% held by former employees) and over 60% owned by various funds (including the initial major investor, ruNet Holdings).
After reporting a year-to-year increase of 43% in revenue, which was over 400 million dollars, the company now plans to attract more investors. The IPO (initial public offering) is expected to take place in the early summer and will be managed by Morgan Stanley and the Deutsche Bank. According to various reports, Yandex’s target is raising 1 billion dollars with this move.