New Statements Forcing Russian Tech Giant Yandex Shares Further Down
NEW YORK – October 23, 2018
A Russian draft law proposing limiting foreign ownership of news aggregators in Russia is justified, Kremlin spokesman Dmitry Peskov said on Tuesday, Reuters reported.
Russian officials’ statement will weaken Yandex NV’s (NASDAQ: YNDX) position, potentially leading to new massive sellouts by U.S. and European hedge funds, repeating last week’s scenario of a few days of stock price declines, analysts warn.
Shares in Russian search engine Yandex were down on Monday after a report that the government was proposing to limit foreign ownership in online news aggregators to 20%.
Earlier, Yandex’s co-founder and CEO Arkady Volozh made a statement that sent Yandex shares up about 8% in the Moscow Stock Exchange.
“I am committed to leading Yandex to new heights, and I have no intention to sell my shares,” Volozh said.
According to Yandex’s annual report, Volozh holds 49.2% of Yandex voting rights, comprising both Class A and Class B shares. Class B shares have 10 votes per share and Class A gives one vote per share.
The CEO’s statement and other efforts to prevent U.S. investors from panic selling had only a short-term effect. After the subsequent Interfax report on the limiting of foreign ownership of news aggregators, stock prices continued to drop.
Yandex NV, an internet and technology company, operates an internet search engine in Russia and internationally. The company offers search, location-based, personalized, and mobile services that enable users to find information, and communicate and connect over the internet from desktops and mobile devices. It provides geolocation services, such as Yandex.Maps, Yandex.Navigator, Yandex.Auto, and Yandex.Transport; there is also Yandex.Mail, Yandex.Disk, a cloud-based storage service, Yandex.News, an online news aggregation service, and many other services. Yandex NV was incorporated in 2004 and is based in Schiphol, the Netherlands.