After a controversial advertisement deal with Yahoo! Inc., Google has struck another deal with Russia’s leading online advertising service, Begun, which is seen as Google’s attempts of challenging the dominance of Yandex.
According to the deal, Google will buy 50.1 percent stake in Begun for $140 million from Rambler, and the latter will hold the remaining 49.9 percent share, which it would buy from Bannatyne Limited, a Finam Group affiliate.
Finam Group is expected to receive $ 69.9 million from the deal, whereas Rambler is said to get $ 50 million, and the deal is expected to close in September this year.
The search engine giant stated that the deal would offer advertisers a comprehensive access to relatively larger network of websites, and the publisher would be benefited by broader set of adverts to place on their websites.
As per the deal, Rambler will display Google’s ads alongside the search results from its search engine.
Quoting the significance of the deal, Alexei Basov, director general of Begun said, “The entire industry will benefit from this transaction, as there is high potential for synergies.”