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What Will Uber’s IPO Bring to Yandex’s Table?

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Apr. 16 2019, Published 12:02 p.m. ET

Yandex owns a stake in Uber

Ride-hailing giant Uber is planning to go public this year, following in the footsteps of its rival Lyft (LYFT). Yandex (YNDX) owns 2.0 million shares in Uber, and these shares were valued at $54 million a few years ago. Yandex’s stake in Uber could be valued at more than $110 million at Uber’s IPO, according to a report from TechCrunch. Yandex is only a small minority shareholder in Uber. The larger shareholders in Uber include SoftBank (SFTBF) with a 16.3% stake and Alphabet (GOOGL) with a 5.2% stake.

Yandex and Uber are also joint venture partners. The companies co-own Russian ride-hailing and food delivery business Yandex.Taxi. Yandex is the majority shareholder with a stake of ~60%, and Uber revealed in its IPO prospectus that it owns a 38% stake in Yandex.Taxi.

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How Uber’s IPO could benefit Yandex

Uber’s IPO could bring good tidings for Yandex. First, Yandex could raise tens of millions of dollars in additional cash by selling its Uber shares at the company’s IPO, boosting its cash reserve. Yandex’s cash reserve stood at $990.3 million at the end of the fourth quarter, down from $1.4 billion at the end of the third quarter. Alphabet, Amazon (AMZN), and Baidu exited the fourth quarter with cash reserves of $109.1 billion, $32.2 billion, and $20.6 billion, respectively.

The other way in which Yandex could benefit from Uber’s IPO is through the companies’ joint venture. Uber is poised to raise additional cash through the IPO, part of which it could invest in product and technology developments that could, in turn, find their way to the Yandex.Taxi joint venture.

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