Yandex owners have bought iContext
Russia's largest contextual advertising agency, iContext, was taken over by the ru-Net Holdings fund , which also owns over 30% of Yandex shares.
Most likely, the purchase of iContext is related to the upcoming IPO. It is not clear exactly how this is connected. It is possible that the transfer of iContext to Yandex’s formal property is planned in order to increase its capitalization at the time of valuation before the initial issue of shares. It is possible that investors want to use financial investments in iContext to attract additional advertising on Yandex, again in order to increase its estimated value before an IPO. It is also possible that investors are preparing for themselves a reserve bridgehead, which will be used after the release of Yandex on the stock exchange, because then they will lose control over it.
The contextual advertising market is the most promising segment of online advertising, in Russia it shows a double annual growth, and this growth is projected to continue in the next two years. Now the market is about $ 210 million, with 7% controlled by iContext. About 70% of the agency's turnover is provided by advertising sales in the Yandex.Direct system, the rest is accounted for by Google and Runner (Rambler).
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Independent analysts estimate that now iContext’s revenue is about $ 4 million and net profit is a maximum of $ 1 million.
Most likely, the purchase of iContext is related to the upcoming IPO. It is not clear exactly how this is connected. It is possible that the transfer of iContext to Yandex’s formal property is planned in order to increase its capitalization at the time of valuation before the initial issue of shares. It is possible that investors want to use financial investments in iContext to attract additional advertising on Yandex, again in order to increase its estimated value before an IPO. It is also possible that investors are preparing for themselves a reserve bridgehead, which will be used after the release of Yandex on the stock exchange, because then they will lose control over it.
The contextual advertising market is the most promising segment of online advertising, in Russia it shows a double annual growth, and this growth is projected to continue in the next two years. Now the market is about $ 210 million, with 7% controlled by iContext. About 70% of the agency's turnover is provided by advertising sales in the Yandex.Direct system, the rest is accounted for by Google and Runner (Rambler).
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Independent analysts estimate that now iContext’s revenue is about $ 4 million and net profit is a maximum of $ 1 million.
Source: https://habr.com/ru/post/28003/
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