Yandex (YNDX) Sees Upside Following Facebook (FB), Face.com Deal
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Following earlier announcements that Facebook (Nasdaq: FB) acquired Face.com, shares of Yandex (Nasdaq: YNDX) are trading higher
When rumors started circulating late last month that Facebook might be interested in acquiring Face.com, it was also noted that Yandex holds an 18.4 percent stake in the site. Further speculation surrounded whether Yandex, the leading search engine in Russia, would swap its shares for a Facebook stake or simply take the cash and run.
Yandex grabbed the stake with Israeli investment fund Rhodium in late 2010 for a cool $4.3 million, valuing the company at about $23.4 million. Given that Facebook is said to have paid $100 million (which hasn't been disclosed), that's a nice 330 percent return for Yandex, though the overall amount would be minuscule, given its massive market cap at $6 billion.
Taking shares of Facebook might be the better option for Yandex. Given that Facebook is still trading 17 percent below the upper-end of its IPO valuation, there is probably still some room for appreciation... and even better returns.
Yandex is up 5.5 percent Monday afternoon.
When rumors started circulating late last month that Facebook might be interested in acquiring Face.com, it was also noted that Yandex holds an 18.4 percent stake in the site. Further speculation surrounded whether Yandex, the leading search engine in Russia, would swap its shares for a Facebook stake or simply take the cash and run.
Yandex grabbed the stake with Israeli investment fund Rhodium in late 2010 for a cool $4.3 million, valuing the company at about $23.4 million. Given that Facebook is said to have paid $100 million (which hasn't been disclosed), that's a nice 330 percent return for Yandex, though the overall amount would be minuscule, given its massive market cap at $6 billion.
Taking shares of Facebook might be the better option for Yandex. Given that Facebook is still trading 17 percent below the upper-end of its IPO valuation, there is probably still some room for appreciation... and even better returns.
Yandex is up 5.5 percent Monday afternoon.
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