The leading Russian search engine and Internet company Yandex has acquired the business assets of display advertising sales house Mediaselling, Yandex announced on its corporate blog. As a result of the deal, Yandex also gained display ad targeting and planning solution for online publishers.
Mediaselling, which employs staff of 30 people in Moscow, was set up by Lev Gleizer in early 2007 as a result of splitting up online media buying and selling businesses of digital marketing agency AdWatch founded in 2000. The latter was acquired by Aegis‘ digital network Isobar in June 2008.
Mediaselling, which uses its proprietary display ad targeting, tracking and planning technologies, sells display ads on Yandex‘ road information site Yandex.Traffic. It also sell banner ads on newspaper online sites Vedomosti.ru, Kommersant.ru and Gazeta.ru, sports TV channel site Eurosport.ru, and weather information site Gismeteo.ru.
According to business daily newspaper Vedomosti, the deal could be valued at ca. $1.5 million, or 5 x $0.3 million annual income of Mediaselling in 2007. The company reported turnover of ca. $6.7 million in 2007. Yandex reported that 15% (or $25 million) out of its $167 million revenues in 2007 accounted for online display advertising. The online display ad spending in Russia is expected to reach $300 million in 2008.
In 2007-08, Yandex acquired road information service SMILink, business social network MoiKrug and bought out its partner in Yandex.Money. The company recently decided to postpone its IPO on Nasdaq until 2009.