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Rambler to Sell Begun to Googleby Andrew Redfern @ 21st July 2008 9:10 am
Russian Search Engine company Rambler Media announced that it has agreed to sell its contextual advertising company ZAO Begun (”Begun”) and related subsidiaries to Google.
Rambler currently holds 50.1% of Begun. The transaction will consist of Rambler buying the remaining 49.9% stake in Begun from Bannatyne Limited, affiliated with the Finam group of companies, immediately after which Rambler will sell 100% of Begun to Google subject to certain approvals and conditions precedent for a total cash consideration of US$140 million, of which US$69.9 million is attributable to Bannatyne, with customary closing adjustments. Rambler’s net gain from the disposal is expected to be approximately US$50 million after all direct costs associated with the transaction. Proceeds received in respect of the sale of its holdings in Begun will be retained by the Company for further investments and potential acquisitions in line with Rambler’s stated strategy. The Company’s net cash position after the ompletion of this sale is expected to reach US$100 million. The Company’s directors consider, having consulted with its nominated adviser, ING, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Google is the world’s most popular search engine. Begun is one of Russia’s leading search and contextual text based advertising services with local expertise, efficient sales systems and the number of its advertisers exceeds 40,000. Begun’s partner network includes over 143,000 Russian language sites. Mark Opzoomer, Chief Executive Officer of Rambler Media, commented: “Begun is an excellent business which can become even stronger under Google’s ownership. Google has the advertising technology and financial capacity to build upon Begun’s established advertising network in Russia. By working together, we aim to create superior growth for Rambler, better monetisation for our business and stronger value for our shareholders going forward. We look forward to continuing to work closely with Alexey Basov and his team at Begun. This is a positive event for Rambler and an important step in our ambition to best serve our users, advertisers and partners and successfully build Russia’s leading gateway to the web.” Alexey Basov, General Director of Begun further commented: “The entire industry will benefit from this transaction as there is a high potential for synergies. It brings together Google’s visionary technology and Begun’s six years of successful experience in building advertising and dealer networks and direct sales in Russia.” “Google is committed to giving Russian users, advertisers and partners the best possible service and experience,” said Mohammad Gawdat, Managing Director Emerging Markets, Google. “This agreement means more Russian users, advertisers and partners will get better search results and more relevant advertising.” Would you like to know more about driving business from International search engines? If so, contact Hit Search, SEMPO accredited Search Engine Optimisation and Pay Per Click specialists, on 0845 643 9289. Remember, its a big world out there, make sure you become visible. Other Related Stories That May Be Of Interest:
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