While relations between the US and Russia may have frosted over again this has not stopped search engine leader Google from creeping behind the iron curtain with the acquisition of a Russian advertising unit. The group has agreed terms for the $140 million cash acquisition of ZAO Begun from majority shareholder Rambler Media, with other minority holders agreeing to sell their stakes.
The move will pitch Google up against Yandex which has been the driving force on the internet in Russia for some time. However, this is not the first time that Google has looked to gain a foothold in the Russian market, but this is the first time they have acquired a business of this size.
Interestingly part of the agreement will see Rambler Media using Google's advertising technology, offering the group another entry point into the Russian market. Whether Google will be successful this time remains to be seen because historically aggressive US based companies have not always been appreciated in Russia and neighbouring countries. There is even speculation that should Google gain too much of a foothold in Russia, the authorities may step in as they have done in other industries under threat. |
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