Yandex and Sberbank complete the reorganization of Yandex.Market and Yandex.Money

Rhea-AI Summary

Yandex has successfully reorganized its joint ventures with Sberbank, acquiring 100% ownership of Yandex.Market and exiting the Yandex.Money venture. A cash payment of RUB 39.6 billion was made to Sberbank. Following this transition, Yandex.Market will now be fully consolidated in Yandex NV's financial results starting from the third quarter of 2020. Both companies will continue providing transition services for a limited time, ensuring that existing services for users and merchants remain uninterrupted.

Positive

• Yandex owns 100% of Yandex.Market, eliminating joint venture complications.
• Financial impact from the acquisition is clear with RUB 39.6 billion cash consideration.
• Yandex.Market's operations remain unchanged for consumers and merchants.

Negative

• None.

MOSCOW and AMSTERDAM, July 23, 2020 (GLOBE NEWSWIRE) -- Yandex (NASDAQ and MOEX: YNDX) and Sberbank announced that they have completed the reorganization of their Joint Ventures – Yandex.Market and Yandex.Money.

Yandex now owns 100% of Yandex.Market, with an equity incentive pool set aside for Yandex.Market management. In addition, Yandex has exited the Yandex.Money Joint Venture. As a result, any financial services non-compete obligations between Yandex and Sberbank are now terminated.

A net cash consideration of RUB 39.6 billion has been transferred by Yandex to Sberbank.

Yandex and Sberbank will each continue to provide certain transition services to Yandex.Money and Yandex.Market, respectively, for an agreed period of time. The price comparison and marketplace services of Yandex.Market will continue to operate without any changes for users or our merchant partners.

As a wholly owned subsidiary of Yandex NV, Yandex.Market will be consolidated in Yandex NV’s financial results as of today. The changes will be reflected in Yandex’s third quarter financial results.

About Yandex

Yandex (NASDAQ and MOEX: YNDX) is a technology company that builds intelligent products and services powered by machine learning. Our goal is to help consumers and businesses better navigate the online and offline world. Since 1997, we have delivered world-class, locally relevant search and information services. Additionally, we have developed market-leading on-demand transportation services, navigation products and other mobile applications for millions of consumers across the globe. Yandex, which has 36 offices worldwide, has been listed on the NASDAQ since 2011.

More information on Yandex can be found at https://yandex.com/company/.

Contacts:

Investor Relations

Yulia Gerasimova
Phone: +7 495 974-35-38
E-mail: askIR@yandex-team.ru

Press Office

Ilya Grabovskiy
Phone: +7 495 739-70-00
E-mail: pr@yandex-team.com

 

FAQ

What changes occurred in Yandex's joint ventures with Sberbank?

Yandex acquired full ownership of Yandex.Market and exited Yandex.Money.

What was the cash payment made by Yandex to Sberbank?

Yandex transferred RUB 39.6 billion to Sberbank.

How will Yandex.Market be reflected in Yandex's financial results?

Yandex.Market will be consolidated into Yandex NV’s financial results starting from Q3 2020.

Will Yandex.Market services change after the reorganization?

No, Yandex.Market's services will continue to operate without changes for users and merchants.

What advantages does Yandex gain from owning Yandex.Market entirely?

Yandex eliminates joint venture complexities and has full control over Yandex.Market.