Google enhances its Search and Ads in Russia
Posted by: Yakov on the Quintura blog
Rambler Media, which operates Russia’s 4th leading site, agreed to sell its Russian contextual advertising company, Begun, for $140 million to Google as well as to outsource search and contextual advertising on its web properties to Google. As a result of the deal, Google will significantly enhance its position in Russia by getting access to 40,000 advertisers and 143,000 partner sites that embedded the Begun ad code.
The financial investors led by Finam will pocket $69.9 million from the acquisition proceeds, while Rambler will receive the remaining $70.1 million for its 50.1% stake in Begun. Finam acquired Begun from its founders for less than $1 million in 2003. Then Finam sold a 25% stake in Begun for $0.75 million to Rambler in 2004. Rambler exercised its option to increase its stake in Begun to 50.1% for $18 million in 2007. Overall, the financial investors led by Finam shall earn some $88 million or a cash multiple of about 100. The Russian Internet contextual advertising market is expected to double in 2008 from $225 million in 2007.
