Russia’s Yandex has entered into a deal with Facebook to obtain access to the latter’s local content. The Russian Internet group intends to access content posted by local users of the globally popular social networking site. This way, the company thinks it could further enhance its online search results.
In a statement the Russian firm released, it disclosed that it would obtain full access to most of public data from local Facebook users. It would also be able to access public information from Facebook users in nearby territories like Ukraine, Kazakhstan, and Belarus in the CIS and in Turkey.
Yandex is aiming to get access on local Facebook users’ posts. It plans to make its own search results include comments from social media users in the region. The company believes this would help further bolster its traffic.
No money involved
The Russian search engine also revealed that the agreement does not involve any amount of cash. It simply described the newly inked relationship as mutually beneficial to both parties. Thus, this may explain why there is no need for monetary considerations.
As stated, Yondex aims to improve the quality and bolster the popularity of its search results. For its part, Facebook could benefit from the deal by getting greater traffic especially in Russia, where it is currently the fourth most popular Website.
Online leader in Russia
Yandex is the biggest and most popular search engine in Russia. Logically, it eclipses world leader Google in the country. Yandex presently accounts for over 60% of the Russian online market. It derives most of its revenues from so-called text-based advertising.
As for the social media landscape, the country is currently a major territory of local players. Vkontakte leads the pack. It is partly owned by Mail.ru, an online holding company. As mentioned, Facebook has all the reasons to aim to launch programs that would make its presence in Russia stronger.
The Russian online market
Russia could be considered as an important online market to date. The country is presently the biggest Internet market in Europe based on the volume of regular users. That makes Yandex a real authority when it comes to online transactions in the area.
Yandex has been riding on that popularity to raise additional capital. In May 2011, it generated $1.4 billion from an oversubscribed initial public offering launched in New York. Recently, it raised another $500 million through placement of convertible notes due on 2018 to fund its planned share buyback program along with future corporate programs.
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