Russian internet and transportation giant Yandex acquired Uber’s stake in its Self-Driving Group (SDG), as well as Uber’s indirect interest in Yandex.Eats, Yandex.Lavka, and Yandex.Delivery. The total cost of the deal amounted to $ 1 billion, giving the Russian company 100% ownership of all four businesses.
Yandex SDG is an autonomous technology derived from MLU BV, the food transportation and delivery joint venture that Yandex formed with Uber in 2018 by merging the Russian operations of Yandex.Taxi and Uber. At the time, Uber had a 36.6% stake in the new company. Last year, when SDG became a separate business, Uber was left with an 18.2% stake in the company, which was just bought by Yandex. Yandex also bought Uber’s 33.5% collective interest in Yandex’s food delivery service, last-mile logistics service, and 15-minute convenience store delivery service.
In 2019, Yandex and Uber were reportedly considering a IPO of your JV, which Morgan Stanley estimated at about $ 7.7 billion. Yandex says autonomous driving technology is “highly synergistic to the Yandex ecosystem, which includes transportation, e-commerce and food technology businesses.” It makes sense that the company wants to control all that potential growth. Uber, which reported a Second quarter loss of $ 509 million before EBITDA this yearYou might be looking to make a lucrative outing and refocus your priorities closer to home.
“This acquisition will allow Yandex to further increase its strategic management capacity and flexibility when it comes to autonomous driving technology,” a Yandex spokesperson told TechCrunch. “It will unlock greater growth potential for both Yandex and Yandex SDG, creating new sources of shareholder value.”
The acquisitions are part of a larger restructuring of joint ventures MLU BV and Yandex SDG, according to Uber SEC filing on Monday. They will occur in two stages. Stage 1, which is expected to close at the end of the third quarter of this year, will give Yandex a 4.5% stake in the recently restructured MLU, which will focus on mobility businesses such as ride-sharing and ride-sharing. This gives Yandex a total of 71% ownership in the joint venture, 2.8% of which is reserved for an employee capital incentive program. Uber’s full 18.2% stake in SDG is also expected to be sold during the first stage.
Stage 2, which is expected to close later this year, includes the spin-off of Yandex.Eats, Yandex.Lavka and Yandex, handover of MLU and subsequent acquisition of Uber’s stake in these businesses.
Yandex will also receive a two-year US call option to acquire the remainder of Uber’s stake in MLU at a more or less fixed price of $ 1.8 billion, depending on increases agreed during the option period. This number will increase to $ 2 billion if exercised in 2023. The Russian company will also continue to use the Uber brand exclusively in Russia and other countries until August 2030.
Yandex will also obtain an extension of the current license for the exclusive right to use the Uber brand in Russia and some other countries until August 2030, assuming the exercise of the option. Yandex shares rose 5.16% on Tuesday at the close of the market.