Yandex NV (YNDX) buys car classifieds website Auto.Ru for $175 million
Russian search engine company Yandex NV (NASDAQ:YNDX) has acquired online classifieds company Auto.ru for $175 million in cash. The acquisition will add to Yandex’s marketshare in the automotive market. Yandex has a channel that aggregates classified listings across several car classified ad websites. Yandex will now be able to collect revenues on the actual listings and display ads that run along the listings. Auto.Ru will continue to stay online and will not be shutting down. Auto.ru was founded in 1996 and has around 400,000 unique listings.
“Auto.ru is the most popular automobile-related website in Russia and operates the largest and most detailed classifieds catalogue for new and used cars in Russia,” stated Alexey Tretyakov, VP of Commerce at Yandex, in a statement. “Users come to Auto.ru to research what vehicles they should buy, read the latest auto news, search for tires and spare parts and buy and sell their vehicles. The acquisition of Auto.ru will enable Yandex to provide more comprehensive answers to users’ questions and expand our capabilities in auto classifieds.”
Yandex launched in September 1997. The company generates revenue primarily from online ads. The Yandex.Direct ad network was launched in 2001 and the company became profitable in 2002. Yandex went public in the spring of 2011 and raised $1.3 billion. It was the biggest U.S. IPO for a dot com company since Google went public in 2004 at that time.