Google makes headway in Russia
Published: 21 Jul 2008
Rambler Media Ltd., an Internet media and services group in Russia, has agreed to sell the Begun advertising agency to Google for $140 million.
According to Reuters, Rambler also signed an agreement with the search engine to use its search and contextual advertising technology on www.rambler.ru. Under the deal, search queries made on Rambler's home page and through Rambler Search function will be enhanced by Google, while Rambler will display Google ads alongside search results.
Rambler, which currently owns 50.1 percent of Begun, said in it would first buy the remaining 49.9 percent stake in Begun from Bannatyne Limited and then sell the entire firm to Google.
Reuters added: With $69.9 million of the $140 million being attributable to Bannatyne, affiliated with the Finam group of companies, Rambler expects to receive a net gain of around $50 million. Rambler, the only listed Russian Internet firm, said it would use the proceeds from the sale to finance its investment program and potential acquisitions. The deal, seen closing in September, is expected to support margin improvement in future years, the company said, adding it maintained its earlier guidance for the full-year 2008.
Rambler sees the Internet advertising in Russia growing at an annual 50 percent and expects the market size to exceed $1 billion in 2010 in terms of revenues.
(EyeforTravel is scheduled to conduct Online Travel Market Russia 2008 conference on 24-25 September 2008 during the Leisure Exhibition at Crocus Expo in Moscow. For more information, contact:
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