Facebook Inc (FB) signs deal with Russian search engine Yandex
Facebook Inc (NASDAQ:FB) has signed a deal with Russian Internet company Yandex. Yandex will feature content from Facebook users in search results. Yandex has a 60% market share in Russia followed by Google.
Most of Yandex’s revenues are from text search-based ads. Yandex said that they will get full access to public data from Facebook users in Russia, Ukraine, Belarus, Kazakhstan, and Turkey. The Yandex search engine also displays user comments.
The agreement is a non-cash agreement. There are mutual benefits. Yandex will be improving search result quality and Facebook will get more traffic. Facebook competes against local social network Vkontakte. Vkontakte is partially owned by Internet holding company Mail.ru.
Yandex went public in New York in May 2011 and raised $1.4 billion. Yandex’s stock has risen around 70%. Yandex recently raised $600 million by placing convertible senior notes due 2018 for a share buyback program and general corporate purposes.
[Source: Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry