Google Buys Russian Contextual Ad Firm From Rambler For $140 Million
We have recently written about a flurry of Russian online deals, and this is among the bigger ones that have happened in the last year or so: Google has bought contextual advertising company ZAO Begun from it parent, the internet portal Rambler, for about $140 million. Rambler currently owns 50.1 percent of Begun..under this deal, it would first buy the remaining 49.9 percent stake from Bannatyne Limited and then sell the entire firm to Google (NSDQ: GOOG). Rambler’s net gain from the disposal is expected to be about $50 million after all direct costs associated with the transaction, it said (PDF release here).
Rambler is traded on AIM in London, and last year sold a majority stake in the company to Russian media holding company Prof-Media‘s unit PM Invest Company (owned by billionaire Vladimir Potanin). Mark Opzoomer, former Yahoo (NSDQ: YHOO) Europe Managing Director joined as CEO of the company mid last year. Begun was started six years ago, and has built an advertising and dealer network and direct sales team in Russia. During the first four months of 2008, Begun generated profits before taxation and minority interest of about $3.4 million.
Separately, Rambler has also signed a search and advertising deal with Google for its Rambler.ru portal. Rambler will continue to operate its own brands, web properties and other ad services.
Related StoriesPosted In: Advertising, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, Google, Countries, Europe, Russia, rambler
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Comments (1)
Jul 18, 2008 8:05 AM
You can see why Russia is an attractive market to buy in to. eMarketer forecasts the online population will be Europe’s second largest, at 40 million, by end of this year, and the ad market is expected to double to $685 million.
http://www.emarketer.com/Article.aspx?id=1005901
http://blog.quintura.com/2008/02/06/russian-internet-advertising-market-to-grow-to-685-million-in-2008/
Jul 18, 2008 12:35 PM
and good timing too as the pace here in U.S. slows down, other economies are picking up. i think Google’s acquisition is the first major one from a U.S. powerhouse there…
Jul 19, 2008 1:27 AM
There are millions of Russians using Rambler all over the world. Russian community in the USA is about 8 million strong, so the advedrtizing on Rambler will likely be targetting thos abroad too.
With that said, Russia is picking up the pace pretty quickly, with the businesses popping like mushromms after the rain.
Jul 20, 2008 4:17 PM
great deal, Russian market has great potential and this investment makes perfect sense
Aug 5, 2008 11:11 PM
Great express. Google started its big purchases, just buy digg.
Aug 5, 2008 11:16 PM
Oh ,Yes,Google purchasedPromote the development of factory of U.S.A. process, very much loud contribution.
Aug 7, 2008 12:10 PM
Now Russian Internet marketplace grow as rocket, so its great deal for investments.