Russia forms $1.0 billion joint fund with Turkey
Yandex (YNDX) and Russia’s sovereign wealth fund, the RDIF (Russian Direct Investment Fund), are discussing potential investments in Turkey, according to a report from Reuters. This month, Russia and Turkey announced that they had formed a $1.0 billion joint investment fund through which they would invest in the technology, healthcare, and infrastructure sectors.
Yandex is Russia’s largest Internet search engine company, controlling 50.3% of the search market in the country in March, according to StatCounter data. Google (GOOGL) held a 45.8% share in the search market in Russia in the month. Verizon’s (VZ) Yahoo and Microsoft’s (MSFT) Bing held 0.37% and 0.36% shares, respectively, of the Russian search engine market in March.
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Yandex’s revenue rose 39%
At the moment, Yandex draws the majority of its revenue from advertising. Like its fellow search companies Google and Baidu (BIDU), Yandex is also seeking to diversify beyond the advertising industry. As a result, the company has ventured into the e-commerce, taxi, digital payment, and cloud computing spaces.
Last year, Yandex entered Turkey’s e-commerce industry through a partnership with Hepsiburada. Yandex’s teaming up with the RDIF could help it accelerate its penetration of Turkey’s digital economy. As more businesses embrace cloud computing to better control costs and operate more efficiently, Turkey could prove a valuable market for Yandex’s cloud services.
Yandex generated revenue of $559.1 million in the fourth quarter, an increase of 39% year-over-year, outpacing revenue rises of 22% each at Alphabet and Baidu.