Event Note: Inter Alias, Yandex Sale of Search Assets

Yandex N.V. has entered into a share purchase agreement to sell its main Russian businesses and assets to JSC Solid Management, a Russian investment company. The key points are:

* Yandex N.V. (the Seller) has agreed to sell its shares in International Joint Stock Company Yandex (the Company) to JSC Solid Management (the Purchaser) in two tranches. The Company owns Yandex's core Russian businesses and assets.

* The total consideration for the sale is RUB 475 billion. This will be paid through a combination of cash and Yandex N.V. Class A shares transferred by the Purchaser to the Seller.

* The sale is divided into two completions - First Completion for 50% plus one share, and Second Completion for the remaining shares. Various conditions need to be met for each completion.

* After the sale, non-compete and non-solicit obligations will apply restricting Yandex N.V. from competing with the sold businesses in Russia for a period of time.


This represents a major corporate restructuring for Yandex, with it agreeing to divest its core advertising, search and other Russian-focused businesses and assets to a local investor. This allows Yandex N.V. to exit the Russian market while raising significant cash proceeds.

The sold assets include Yandex's Search and Portal, Advertising, Mobility and Delivery (including ride-hailing and e-commerce), Plus and Entertainment, Classifieds and other Russian business lines. Yandex N.V. will retain a few international-focused businesses not transferred in the sale.

The divestment enables Yandex to reduce its exposure to the Russian market and regulatory environment. However, it also means giving up control of its original core businesses that drive the majority of its revenues currently. The sale proceeds will provide resources for Yandex to invest in developing its remaining international businesses and potentially acquire new growth assets outside of Russia.

In summary, this is a highly significant event, fundamentally reshaping Yandex's business profile, geographical footprint and future growth strategy. While mitigating risks, it also raises questions about how Yandex will drive growth and what its identity will be in the future with its new slimmed-down perimeter focused outside its home market. More details will likely emerge over time on the company's plans for leveraging the sale proceeds.

Yandex's research and development efforts span several layers of the 10-layer AI stack, showcasing their expertise and contributions to the field of artificial intelligence. Here is an analysis of where Yandex's R&D work is concentrated:

1. Machine Translation and Natural Language Processing (Layer 4: AI Algorithms & Models)

* Yandex's research in this area focuses on developing accurate and efficient machine translation and natural language processing capabilities.

* Their work aims to improve translation quality, semantic understanding, natural-sounding translations, and text-to-speech synthesis.

* Key research topics include language translation, text processing, phrase transformation, and generating language models.

* Notable contributions: Patents '423, '413, '427, '432, '337, '273, '268, '271, '252, '280, and '223.

2. Web Browsers and User Interfaces (Layer 8: AI Distribution & Ecosystem, Layer 10: Human & AI Interaction)

* Yandex's research in this area relates to web browser operations, user interface design, and gesture-based interactions.

* Their work focuses on enhancing web browsing experiences, content organization, task management, and natural user interactions.

* Key research topics include navigation, content organization, task management within web browsers and applications, and gesture-based interactions.

* Notable contributions: Patents '415, '412, '414, '583, '307, '311, '378, '314, '238, '241, '387, and '277.

3. Search and Information Retrieval (Layer 5: AI Data & Datasets, Layer 7: AI Application & Integration)

* Yandex's research in this area aims to enable efficient and accurate search and information retrieval.

* Their work focuses on improving relevance ranking, search processing speed, and the organization and presentation of search results.

* Key research topics include search engine optimization, result ranking, indexing, and information retrieval.

* Notable contributions: Patents '410, '448, '404, '452, '229, '310, '356, '383, '319, '360, '297, '227, and '196.
4. Advertising and Content Recommendation (Layer 7: AI Application & Integration)

* Yandex's research in this area focuses on enabling personalized and relevant content recommendations and advertising experiences.

* Their work aims to improve user engagement, click-through rates, conversion rates, and user satisfaction through tailored content.

* Key research topics include targeted advertising, content recommendation, and personalization.

* Notable contributions: Patents '429, '467, '474, '233, '237, '265, '295, '361, '341, and '225.

5. Self-Driving Vehicles and Robotics (Layer 2: AI Chips & Hardware Infrastructure, Layer 7: AI Application & Integration)

* Yandex's research in this area focuses on advancing self-driving vehicle and robotics capabilities.

* Their work aims to improve safety, efficiency, and reliability of autonomous systems for navigation, prediction, and decision-making based on real-time data processing and machine learning.

* Key research topics include self-driving vehicles, robotics, and autonomous systems.

* Notable contributions: Patents '482, '487, '488, '491, '497, and numerous others related to self-driving technologies.

In summary, Yandex's research and development work is primarily focused on the middle and upper layers of the AI stack, particularly in areas related to AI algorithms, data, applications, distribution, and human interaction. Their contributions span machine translation, web browsers, search, advertising, and self-driving vehicles, showcasing their broad expertise and commitment to advancing AI technologies across various domains.