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2019/11/29 17:46:20

History Yandex

The history of development of the Russian Yandex Company is one of the most striking examples of success in domestic technology business. The main article about the company here.

Content

  • The main article about the company: Yandex

Thematic articles on the history of the company

2019

Emergence of own shops

At the end of November, 2019 "Yandex" had own shops in which structures of the company are on sale: smart columns " Yandex.station " and "Yandex. The station Pass", the mediaplayer " Yandex.module ", the equipment for the smart house and the branded products, for example, clothes.

According to Kommersant with reference to the press service of "Yandex", the company started sales points in a format of "islands" (the area — 1.4 sq.m) in shopping centers "Troyka" in Moscow, "Okhta Moll" in St. Petersburg and Rainbow in Yekaterinburg. This project is started in cooperation with ProStore company.

At \"<!--LINK 0:16-->\" there were own shops in which structures of the company are on sale
At "Yandex" there were own shops in which structures of the company are on sale

"Yandex" intends to expand network of the shops, but how many points are going to be opened in 2020, in the company do not speak.

To become noticeable in such format at the level of million-plus cities of the company it is necessary to open 150–200 "islands", the CEO of "Infoline-analytics" Mikhail Burmistrov considers. On it only within the first year 200-300 million rubles can be required, considering lease and salaries, the expert estimates.

According to him, lease of "islands" can cost to "Yandex" approximately 100 thousand rubles a month for Moscow and 60 thousand rubles in regions. The director of the department of the trade real estate of Knight Frank Evgenia Hakberdiyeva gives higher number — from 300 to 500 thousand rubles.

Mikhail Burmistrov doubts payback of the project, however, according to him, the main task of "Yandex" is involvement of audience to the ecosystem.

«
"Yandex" well will find itself in a niche of pulse purchases and gifts. But about image effect of such "islands" for the company after opening of three points to speak early — the partner of Data Insight Fedor Virin warns.
»

"Islands" can become the driver of growth in sales of products of "Yandex", but retailers will still occupy a significant share in sales, the vice president for sales of Svyaznoy David Borzilov believes.[1]

Creation of management company is Fund of public interests

On November 18, 2019 "Yandex" announced introduction of a new management structure by the company. According to changes which approved Board of Directors the non-profit Fund of public interests (Public Interests Foundation) to which the part of functions is transferred is created. Read more here.

Failure of Huawei from substitution in smartphones of Google services applications of "Yandex"

Huawei is not going to substitute in the smartphones Google services with applications of "Yandex". The vice president of division of mobile services Huawei in Europe Jaime Gonzalo told about it in an interview of RIA Novosti at the end of September, 2019. Read more here.

The U.S. presidential candidate held shares of "Yandex", but held back it

On September 6, 2019 it became known that the candidate for president USA Cory Booker owned a share in "Yandex" at the time of balloting in the U.S. Senate in the 2013th. In more detail here.

Reuters: the western investigation cracked "Yandex" to spy on users

On June 27, 2019 the western investigation cracked "Yandex" to spy on accounts. The company confirmed the attacks, but assured that data of users managed to be saved. Read more here.

Selection of 20% of the capital for motivation of employees

On June 12, 2019 it became known of expansion of the program of motivation of employees in "Yandex". The company is ready to spend to 20% of the capital for deduction of specialists.

By the end of March, 2019 15% of the capital of "Yandex" were selected for remuneration of workers, from them about 2% (6.6 million class A shares) are not distributed. The Board of Directors suggested to take away 16.2 million more such actions that the company could use for this purpose 7% of the unallotted capital on the motivational program, and all program of motivation would grow to 20% of the capital (all 325.7 million actions of classes A and B are produced), Vedomosti with reference to documents of the company to annual meeting of shareholders writes.

The Board of Directors of \"Yandex\" suggested shareholders to direct 20% of the capital for the program of motivation of employees to keep talents in the company
The Board of Directors of "Yandex" suggested shareholders to direct 20% of the capital for the program of motivation of employees to keep talents in the company

The representative of "Yandex" Ilya Grabovsky reported to the edition that until the end of 2019 the program should affect about 50% of staff of the company. All employees can apply for remuneration, the program is tied to a position of each of them and assessment of results of work.

By calculations of "Yandex", at such changes in the program of motivations of employees of actions should be enough for 2-3 years. However it is only a preliminary estimate as the reserved actions can be used with a different speed depending on their cost, the amount of remunerations in the competing companies, workforce recruiting and other factors.

For implementation of the motivational Yandex program acquires shares from the exchange. So, in 2018 the company redeemed 4.8 million securities of a class A, having paid about $150 million for this packet. In 2016-2017 redemption of stocks was not made.

"Yandex" also allows an additional issue — in the section with assessment of potential washing out of the capital. In case of an additional share issue of a share of shareholders can be indistinct for 4.6% that the Board of Directors considers "acceptable".[2]

Failure to provide FSB encryption keys

On June 4, 2019 it became known that Federal Security Service (FSS) demanded from "Yandex" keys for decoding of messages of users of services "Yandex.Mail" and "Yandex.Disk". Department requested data several months ago, but the company did not provide them though, under the law, had to make it within 10 days.

Under the Yarovaya Law, FSB can demand encryption keys from any services from the register of the organizers of dissemination of information (ODI), i.e. services with message exchange function. "Yandex.Mail" and "Yandex.Disk" are included into this list. For failure to fulfill the similar requirement of FSB since spring of 2018 in Russia block the Telegram messenger.

FSB demanded encryption keys of correspondence of users from \"Yandex\"
FSB demanded encryption keys of correspondence of users from "Yandex"

According to RBC, "Yandex" refused to transfer FSB encryption keys as it can threaten passwords of users. The company is afraid of monetary losses and outflow of users to the competing services because of cooperation with security officers, reported to the edition the informed source.

Interlocutors say that the intelligence agency requires from "Yandex" session keys which allow to learn the login and the password from mail and also to monitor actions of the user in services. For example, in "Yandex.Disk" it is possible to watch who and that downloaded.

FSB did not begin to comment on information on a request. The representative of the press service of "Yandex" said that the company works according to the legislation.

The experts polled by the edition consider improbable repetition of the scenario Telegram in a case with "Yandex". Most likely, some compromise will be reached, however the authorities can limit access to services of the company that she became more compliant for several days.

By the beginning of June, 2019 do not extend to similar Google services of the requirement of FSB as are not included in the register of organizers of dissemination of information of Gmail or Google Drive.[3]

Cooperation with Isbank in the field of payment of Internet purchases

On May 30, 2019 Yandex reported that millions of Russians will be able to pay with purchase rubles on tourist online platforms of Turkey. It became possible thanks to cooperation of the Yandex.Cash and the Turkish bank Isbank. In Turkey for May, 2019 more than 10,000 Internet platforms work with it. Within this cooperation Isbank will begin to connect to the partner companies acceptance of payment through the Yandex.Cash. Read more here.

Cooperation increase with Rambler in the field of Internet advertizing

Yandex Companies and Rambler Group announced on January 10, 2019 cooperation increase in the field of Internet advertizing. The parties prolonged the agreement on placement by advertizing "Yandex" on the media resources which are a part of Rambler Group. Along with placement of banner advertizing, the agreement also includes different options of monetization of video content on the platforms Rambler Group. Read more here.

2018: Participation in creation of Association of participants of the market of Big Data

On October 16, 2018 MegaFon, Mail.Ru Group, oneFactor, Tinkoff Bank, "Yandex" and Sberbank founded Association of participants of the market of Big Data. Anna Serebryanikova, an operational direktor of MegaFon is elected the president of the organization. The board of association was joined by representatives of all founder companies. A main objective of the organization — creation of conditions for development of technologies and products in the field of Big Data in Russia. Read more here.

2017

The head of "Yandex" and top managers of Kaspersky obtained the Maltese citizenship

The head and the co-founder of Yandex Company Arkady Volozh became the citizen of Malta. The RBC edition which studied the list of new citizens of the country published in the newspaper of the government of Malta by Gazzetta tal-Gvern ta’ Malta[4] reported about it[5].

In addition to actually ​​ Yuryevich's Arcadia of Volozha Timofey Arkadyevich Volozh, Anna-Esther Arkadyevna Volozh, Sifra Leybovna Volozh and Yury Abramovich Volozh are mentioned in the list of new citizens of Malta.

RBC reminds that in the press Timofey Volozh was called the son Arkadiya Volozha, and Anna-Esther - his daughter.

From the Arkadiya Volozha biography it is known that his parents are called by Yury Abramovich and Sofya Lvovna.

Representatives of "Yandex" explained emergence in Volozha of the Maltese citizenship with the fact that he travels around affairs of the company much, and existence of the European passport allows to use a visa-free regime. However, "as before, he remains the Russian citizen and fulfills all requirements of the legislation of Russia", the representative of "Yandex" said.

The largest websites monitor users via tools of "Yandex"

More than one thousand websites from the first 10 thousand in the rating of Alexa use the tools capable to monitor clicking of keys and the movement of a mouse of the user. One of the most popular tools belongs to "Yandex". He remembers all data entered by the user on the page, including credit card numbers and codes on their reverse side[6].

Project No Boundaries published in November, 2017 the list of the websites which in details fix behavior of the visitors — up to what keys on the keyboard are clicked by the user what movements by a mouse he makes and as uses scrolling of the page. No Boundaries says that similar shadowing users is performed by many popular websites, both Russian, and foreign, including yandex.ru, hp.com, comcast.net, istockphoto.com, intel.com, lenovo.com, autodesk.com, windows.com, t-mobile.com, mts.ru, kaspersky.com, redhat.com, logitech.com, adidas.com, hpe.com, symantec.com, nintendo.com, alfabank.ru, bitrix24.ru, etc.

In all listed cases bots which are used by No Boundaries in the researches managed to find the websites directly in write process of the user session. The project is headed by the researcher of security Steven Englehardt from Princeton University. Data give all the best on the Freedom To Tinker resource.

The script which allows to keep track of behavior of the user in such details received the name "reproduction of a session". Its opportunities are exceeded considerably by functionality of a normal analytical script which defines what pages are visited by the user and what search queries enters. "Reproduction of a session" is included in analytical services which 1239 websites from the first 10 thousand rating of Alexa use in total.

Visit of the President of Russia to office

On September 21, 2017 the President of Russia Vladimir Putin visited the Moscow office of "Yandex" and examined developments of the company.

In more detail about a visit with a large number of a photo here.

The SSU searches "Yandex"

Offices of " Yandex.Ukraine " company which are in Kiev and Odessa underwent in May, 2017 to a search from the Security Service of Ukraine (SSU)[7].

"In our offices in Kiev and Odessa there are representatives of the Security Service of Ukraine now. We have no information on the reasons of today's actions of the SSU yet. To our offices lawyers already left. Within processes of law we are ready to provide to bodies necessary information" — so characterizes a situation of "Yandex".

The fact of carrying out searches was confirmed from the SSU to Espresso TV TV channel. According to the press secretary of the SSU Elena Gitlyanskaya, Article 111 of the Criminal code of Ukraine prescribing punishment for high treason including in the field of national cyber security became the basis for actions of intelligence agency. Article suggests to punish guilty persons imprisonment for a period of 12 up to 15 years with confiscation of property.

You See Also: Sanctions of Ukraine against Russia and Prohibition of the Russian IT-Business in Ukraine. We estimate disaster scale

Hit under the Ukrainian sanctions

On May 16, 2017 the president of Ukraine Petro Poroshenko the decree enacted the decision of the National Security and Defense Council (NSDC) on sanctions against the Russian companies and their affiliated enterprises in Ukraine. In total in the sanctions list there were 468 legal entities, from them 81 – connected with the IT field. Among the companies which fell under sanctions there were also Russian and Ukrainian legal persons of "Yandex" and a set of its services. In the list there were also popular portals Kinopoisk and "Авто.ру" which belong to the company. Read more here.

System development for control of tired drivers

On March 17, 2017 it became known of plans of "Yandex" to develop and implement the IT system for control of the tired drivers connected to service " Yandex.taxi ".

«
We really study several months the different technological solutions available in Russia and abroad. At detection of signs of fatigue of the person driving such system will warn that it is necessary to take a break, and can limit booking from passengers — told the Kommersant newspaper in "Yandex".
»

Cars \" Yandex.taxi\"
Cars " Yandex.taxi"

The CEO of " Yandex.taxi " Tigran Hudaverdyan called to the edition approximate project investment cost — about $20 million. You watch Yandex in more detail . Taxi.

2016: Start of development of unmanned vehicles

Main article: Yandex.Taxi Unmanned vehicle

In February, 2016 it became known of plans of "Yandex" to develop unmanned vehicles. The company intends to become one of pioneers of the market of technologies of off-line control by vehicles. According to Vedomosti, on the website of "Yandex" there was vacancy posting of the developer researcher who should be engaged in sensing technologies of traffic lights, signs, bands and marking, machines and other participants of traffic. Also "Yandex" wants to learn to compare a flow of the entering data from cameras and radars, to model surrounding objects, to monitor them and to predict behavior, to plan and perform maneuvers, says the company. You watch Yandex.Taxi the Unmanned vehicle in more detail.

2015

Growth of a share in the market of Internet search up to 57.3%

Data of LiveInternet service according to which the share of "Yandex" in the Russian market of Internet search increased to 57.3% in the fourth quarter 2015 from 57.1% three months before are provided in the annual report of "Yandex". The number of search queries grew by 5% year on year.[8]

«
"Despite an adverse economic situation and fierce competition, we managed to stabilize our market share, to increase quality of search and to considerably expand the search index. We also entered new technically difficult model of an auction for advertizing that already brings notable results" — the head of group of "Yandex" Arkady Volozh reported.
»

The ex-employee is condemned for attempt to sell the source code

On December 24, 2015 it became known that the former employee of "Yandex" is condemned for attempt to sell for nothing the stolen source code of the search system worth billions rubles. Loss of the source code could turn back for the company long trials in courts, serious reputation costs and falling of capitalization.

According to the indictment, in March, 2015 Dmitry Korobov, still working at that time in "Yandex", copied the software containing the source code and algorithms of the search system from the server of the company. Information was loaded on the removable medium for the purpose of the subsequent transfer to the third parties. Read more here.

2012

The Tiger Global fund gets rid of actions of Yandex

On November 19, 2012 it became known of decrease in a share of Tiger in the capital of Yandex N.V. (it is told in the report of Renaissance Capital which refers to information which is officially opened by Tiger. As of June 29, 2012 this family of funds possessed, according to Bloomberg, 32 million stocks of Yandex (9.8% of all stocks of the company), and on September 30 — only 23.5 million (7.2%). The weighted average market share price of Yandex for the III quarter was $21.61 — thus, having sold 8.5 million papers, Tiger could gain $183.7 million on November 19, 2012 on 8 p.m. Moscow time the packet belonging to it cost $510 million.

Since November, 2011 when the moratorium on sale of shares of Yandex after the IPO expired, Tiger sold 30.6 million shares of the company, analysts of Renaissance counted. Tiger share in a total quantity of its actions decreased more than twice since then — from 16.2 to 7.2%, data of Bloomberg demonstrate. Tiger invested in Yandex long before the IPO and even before crisis began to make attempts to lock in profits. In 2008 he was one of initiators of the IPO planned then (it was prevented by crisis), and on the eve of placement in May, 2011 Tiger converted all stocks of Yandex owned by it from a class B (each paper of 10 voices, but has restrictions for sale) in class A (at each action only one voice, but they can be sold freely). During IPO Tiger was one of the main sellers: it got rid approximately of 4% of authorized capital of Yandex.

According to the analyst of Uralsib capital Konstantin Belov, Yandex remains underestimated. By its calculations, the target price of its action in the long term should be 12 months $26 that is 19.8% higher, than on November 19, 2012. But each investor has planning horizons and the idea of under what conditions an exit from an asset becomes for it comfortable, Belov argues. — one of the oldest investors of Yandex and it is logical to Tiger to assume that the current price provides for it an acceptable recall ratio on the invested capital, he says.

From the point of view of investors reduction of a share of Tiger — good news as free-float grows and the stocks Yandex become more liquid, said in the report of analysts of Renaissance (now they estimate its volume at 43%)[9].

"Yandex" was bypassed for the first time by Channel One by the audience size

The portal of "Yandex" in April, 2012 was daily visited by 19.1 million people whereas the audience of television Channel One made 18.2 million people a day. Such data are provided by the Vedomosti newspaper, referring to a research of TNS company. Thus, the Internet resource for the first time became the most popular media in Russia. "Yandex" and also Mail.ru almost caught up with First and on week audience (for this purpose in April they lacked 0.7 million and 1.2 million people respectively), writes the edition.

The number of search queries in Russia from August, 2010 to August, 2012 almost doubled.

Also the difference between audience of all TV channels and all Russian-speaking segment of the Internet is reduced. According to TNS, in April 30.5 million Russians daily came into a global network, it is about 1 million less, than a total quantity of TV viewers in April.

Court for results of issue

On February 7, 2012 it became known that the Supreme Arbitration Court (SAC) registered the complaint of EAA Asset Management-Consulting Ltd company (The British Virgin Islands) to the court order about failure to oblige to delete "Yandex" content from the search system, reports the RAPSI agency. The claimant lost several lower courts earlier, trying to prove that the search system should not have indexed a number of materials on the website compromat.ru.

In 2011 EAA Asset Management-Consulting took legal action with the claim against "Yandex" for protection of a goodwill. She required to oblige search engine to stop performing information search on the website www.compromat.ru. Data concerned the founder of the Austrian financial and industrial group EAA Asset Management-Consulting Mikhail Dvornikov[10].

"We cannot comment on the complaint filed to VAS as did not receive any documents. We agree with the courts of the first and appeal instances which once again supported a position of "Yandex" that dissemination of information in the search system is not performed. "Yandex" is not a censor and is not responsible for the maintenance of other websites which are included in the search index" — the press secretary of "Yandex" Ochir Mandzhikov told.
Vasily Moiseyev, the lawyer of MKA "Nikolaev and partners", considers the solution of the Virginia company to take legal action illogical: "Claims would be clear if "Yandex" and EAA Asset Management-Consulting Ltd consisted in contractual relations. For now the claimant has to address with the claim concerning the website on which false information is published. If to assume that VAS nevertheless will side with the claimant, then afterwards many will want to bring similar charges to searchers. So the last will simply be ruined, paying claims. However, I do not trust in such outcome — it is improbable."
"It is illogical and unreasonable to blame "Yandex" in this case: the searcher is not competent to define reliability and objectivity of information, the court should be engaged in it — German Klimenko, the founder of LiveInternet comments on RBC daily. — When "Yandex" filters information, for example, on a pornography, the searcher is guided by the legislation. So, in this case it would be more reasonable for company to take legal action with the requirement to recognize information on the website compromat.ru false. Only then will become logical to ask "Yandex" to prohibit indexation of this material".

Development of Yandex.Disk service

On February 27, 2012 it became known that "Yandex" develops service with the working name "Yandex.Disk".

2011

Installation of search in smartphones on Windows in Russia

In November, 2011 it became known that search of "Yandex" will become the basic for the Russian users of smartphones on the Microsoft Windows Phone 7 (WP7) platform. Thus the searcher tries to stop falling of a market share of search[10].

Search of "Yandex" will be installed as the basic in the smartphones HTC Mozart, Titan and Radar, Samsung Omnia W and two Nokia Lumia devices, the representative of "Yandex" Ochir Mandzhikov told. It was confirmed by representatives of Samsung, HTC and Nokia.

Conditions of cooperation with producers of the party do not open. Usually the producer and the search system divide income from the advertizing shown on smartphones in a proportion of 50% for 50%, the leading analyst of Mobile Research Group Eldar Murtazin says.

Microsoft has own search engine — Bing. Microsoft offers the Russian users the most popular services, the representative of Microsoft explains. Though the final decision on the choice of the search system, according to him, is accepted by smartphone manufacturers. "Yandex" is more popular in Russia, than Bing, the representative of Nokia Victoria Eremina adds.

Bing is not really popular in Russia — its share, according to Liveinternet, made only 0.8% in October, 2011. "Yandex", on the contrary, is in the lead in the search market of Runet. But recently its share decreases whereas the popularity of his main competitor — Google — grows. From December, 2010 to October, 2011 the share of "Yandex" dropped by 3 items up to 61.1%, and the share of Google grew by 4 items up to 25.5%. Unlike "Yandex" Google develops own operating system for the mobile devices Android and the Chrome browser where the main search — Google. According to Svyaznoy, Android share in Russia for the first nine months 2011 grew from 9 to 27%. And Chrome share in the III quarter 2011 reached 17% - it is almost twice more, than the previous year (data of Liveinternet).

To increase a share, "Yandex" agrees with mobile phone manufacturers and browsers about installation of the search by the basic for users from Russia. Recently the agreement was signed with Samsung about installation of search of "Yandex" on phones from Bada OS.

Mobile versions of OS from Microsoft lose popularity: according to Svyaznoy, in nine months 2011 the share of the smartphones supporting them made 3% (the previous year — 13%). Microsoft tries to correct a situation. Last fall she released new OS for the Microsoft Windows Phone 7 (WP7) smartphones, and in February, 2011 agreed with Nokia about release of phones based on WP7.

If users like WP7 innovations, in a year the share of devices based on this OS will reach 10-20%, the president of Euroset Alexander Malis says. According to M.Video, demand for the first devices with WP7 "reserved".

Options of employees

On November 1, 2011 it became known that "Yandex" reported to the U.S. Securities and Exchange Commission (SEC) on a current status of the option program. It turned out that during public placement of actions of "Yandex" in May, 2011 option holders redeemed papers of the company for the amount more than $50 million[10].

Representatives of the company explained that a part of options was implemented during the IPO, but who took shares, do not speak. As it appears from documents on the website of SEC, the most part of options were really implemented at the placement price, and could purchase $25 those to whom these options were issued, are "certain" old shareholders of "Yandex" and the staff of the company, including Arkady Volozh who was given the option for 500 thousand actions.

But not all purchased "Yandex" so expensively. On the options which were issued till 2011, the cost of share purchase was $2–4. And the staff of Media of Selling LLC got the cheapest option of "Yandex" in January, 2009 — on 378 thousand actions at the price of 1 cent for everyone. The cost of the options "Media of Sellinga" (314 thousand actions) unrealized for today — $8.6 million. The financial director of "Yandex" Alexander Shulgin in 2010, for example, bought "Yandex" for $4.16 and entering into Board of Directors the former head of presidential administration Alexander Voloshin — for $3.43.

After the IPO almost each employee of "Yandex" received 10 conditional stocks of the company for every year of work in the company. These as they are called still, will cash phantom shares in the form of an award on December 30 the 2011th — proceeding from the corresponding quotations on NASDAQ. But how many employees own these options now and how many from them do not work in "Yandex" any more, in the company do not open, specifying that it is about 10% of personnel. For the end of the III quarter in the company 3163 persons worked.

According to the May prospectus of the issue, employees of "Yandex" who did not agree about placement of the stocks directly on the IPO cannot sell papers earlier than in 180 days after primary placement. For the CEO Arkady Volozha and the technical director Ilya Segalovich term is higher — one year. Prohibition extends also to banks underwriters.

Embargo is taken off on November 21. However, the company warned investors that because of active sales after 180-day embargo of an action of "Yandex" "can decrease at any time". On the other hand, the total sale is not expected too as the standard option rules accepted by "Yandex" provide their gradual implementation: 25% — after 365 days after issue, remained — equal shares in the last day of every quarter of the next three years.

It will be hardly possible to expect big decrease in stock exchange rate of "Yandex", the analyst of Finam Leonid Delitsyn considers. On present share price can only win significantly those who received shares long ago and cheap; for most of owners there is a quite good backlog. The current target price of "Yandex" for the end of 2012 from analysts of Finam — $26.41. "Therefore the current $27.52 is fair assessment of the company though at some other investment companies of assessment reach $40 for an action above — Delitsyn argues. — Possibly, and we will raise the estimates. Indicators of "Yandex" advance earlier read forecasts for development of the Russian contextual advertizing".

According to the expert, will also wait for institutional investors when quotations approach $40. The largest risk for capitalization of the Internet companies in the short term is the IPO of discount service Groupon planned for the end of November. "If placement develops unsuccessfully, investors can have a feeling that the bubble is blown off" — Delitsyn concluded.

Google deletes search of Yandex from the Chrome browser

October, 2011. When the Russian company was going to open office in Turkey in 2011, Google removed search using "Yandex" from the corporate Chrome browser.

Exit to the 5th place in the world on number of the processed requests

The Yandex search engine is in the 5th place in the world among search systems by the number of the processed search queries (comScore, September, 2011)[11].

In September, 2010 in the similar rating of "Yandex" took only the sixth place, conceding to the world's largest social network Facebook. Now the Russian search engine moved to the fifth line, and Facebook appeared on the seventh.

First place in rating is still won by Google, Baidu, Yahoo and Microsoft.

Structure of owners of Yandex after carrying out the IPO

During placement at the NASDAQ exchange 52.2 million shares were sold (that makes 16% of authorized capital, or 3% of voting shares). On the scheme the structure of 75% of voting shares of Yandex company after carrying out the IPO is represented. All shareholders from shares more than 3% for May 25, 2011 are provided. Other stocks are owned by smaller shareholders.

Share placing at the Nasdaq exchange for the amount of $1.3 billion

On May 23, 2011 "Yandex" successfully performed share placing on Nasdaq. The company raised earlier announced share price from $22 to $25 and attracted $1.3 billion. Placement of the Russian company became the largest Internet IPO after Google. "Yandex" was estimated more than at $8 billion, and its founder Arkady Volozh earned $101 million.

At the New York exchange Nasdaq Yandex initial public offering – the head structure of Russian "Yandex" registered in Holland took place. According to Reuters with reference to own sources, the price of placement was $25 for an action. It is more than initially announced price band in $20-22. The company reported only that a trading in shares will begin in the evening Moscow time.

Increase in the price turned out to be consequence of the increased demand for securities of the company: as transferred Interfax on Friday, the bid book on the stock Yandex was re-signed more than 5 times. During placement 52.2 million shares were sold, thus, the volume of placement was $1.304. As notes BBC, this largest IPO of the Internet company after Google which in 2004 attracted $1.67 billion.

All Yandex was estimated at $8.031 billion. This assessment corresponds to 23 forecast indicators of profit for 2012, Bloomberg whereas Google bargains proceeding from the similar multiplicator (to the profit of 2012) in 13 notes. The company sold 15.4 million shares that allowed it to attract $385 million. Other 36.7 million placed shares belong to shareholders of Yandex who could earn $919 million.

The analyst of The Street Debra Boarchardt notes that placement of the Russian companies at the American exchanges happens infrequently, and it guards investors. But, the analyst adds, an opportunity to take shares of Internet search engine around $20 for an action looks attractive: shares of Google are traded for $518, the Chinese Baidu – for $129.

Active part in sale of shares during the IPO was taken by management of "Yandex". The founder and the CEO of "Yandex" Arkady Volozh earned $101 million, the technical director Ilya Segalovich - $20.45 million, the commercial director Alexey Tretyakov – $9.165 million, the Head of Department of development Alexey Mazurov – $3.636 million, the project director Dmitry Ivanov – $4.845 million, the director of system administration Mikhail Fadeyev - $454 thousand. According to the results of the IPO Volozha have 19.77% of voting shares of Yandex (it owns a part of the share through offshore BC&B Holdings, joint with Baring Vostok), Segalovich has 4.15%.

The chairman of the board of directors of Systematics Leonid Boguslavsky sold actions of "Yandex" for $67.7 million. Now Boguslavsky through offshore Roth Advisors has 6% of voting shares of the company. Among board members of "Yandex" there is a founder of United Financial Group and the partner of Almaz Capital fund Charles Rayn Ben Kol (Ben Cole, through Cole Management) - $59.5 million, the president of Firehouse Capital John Boyton earned $70.8 million (John Boyton, through offshore John W. Boynton Trust) - $5.8 million.

Ben Kol invests in Russia since the beginning of the 90th, including he invested in the CompTek company which based "Yandex" (Komptek). In 2000 "Yandex" attracted the first investors, in particular, the Ru-net Holdings fund belonging to Baring Vostok. The fund then headed Leonid Boguslavsky, and among his investors there was Charles Rein.

In addition to Volozha, Baring Vostok and Tiger Global funds were among the largest sellers of stocks of Yandex, and the share of the last was reduced from 20.27% to 2.67% of voting shares. Tiger earned $187 million from the IPO. Tiger owns a share in "Yandex" through offshore Tiger Global Cooperatief which stocks are distributed between 7 investment funds. 6 of these funds belong to Charles Coleman.

Baring Vostok earned $156 million from the IPO, at the same time the group remains the largest shareholder of Yandex from shares of 26% of voting shares. The share of Baring Vostok is distributed between offshores BC&B Holding and Ru-net which through nominee holders are owned by Bariing Vostok Private Equity funds. Each of funds has the general partner, Baring Vostok Manager Holding holds shares of these partners. A share in this structure through nominee holders the board member of Yandex Elena Ivashcheeva and other persons owns. Fund management is exercised of Baring Vostok Fung Managers company, decisions are made by investment committee from representatives of funds (members of the committee are listed in the table) on the basis of proposals of the investment partner of funds – BVCPL.

The first facts in media about the planned IPO

On April 15, 2011 The Wall Street Journal (WSJ) with reference to the source familiar with plans of the company reported that a preliminary estimate of "Yandex" for the preparing IPO — $6-9 billion, and placement can take place at the end of May — the beginning of June, 2011. It was confirmed to Vedomosti by the manager, close to participants of placement, having warned that assessment "very preliminary". According to interlocutors of WSJ and Vedomosti, "Yandex" will place on NASDAQ 10-20%[12].

Earlier sources of Vedomosti told that the company and its co-owners are going to gain $1 billion for the IPO. It is not solved yet whether on the exchange only new papers or and actions of co-owners will be exposed too, the manager, close to participants of placement, claims. Organizers of the IPO — Deutsche Bank, Morgan Stanley and Goldman Sachs.

Bunky organizers estimated "Yandex" at 14.6 up to 22 indicators of revenue for 2010 (12.5 billion rubles, or $410 million). Baidu has a ratio of capitalization and revenue for the last 12 months made 42.2, at Google – 5.5, at Mail.ru Group – 20.9.

In November, 2010 the IPO was carried out by the closest competitor of "Yandex" in Runet — Mail.ru Group. Demand for its actions many times exceeded the offer. Investors acquired 18.4% of shares approximately for $1 billion from which the company got $92 million, and the rest — to shareholders. The market estimated all Mail.ru Group at $5.71 billion.

Mail.ru Group and "Yandex" has absolutely different business, the analyst of VTB Capital Anastasia Obukhova says: the first earns generally from media advertizing and paid services, the second — from contextual advertizing (88% of revenue of "Yandex" for 2010). Besides, a considerable part of assets of Mail.ru Group — foreign, "Yandex" — "absolutely Russian history", notices Obukhov. But placement of Mail.ru Group drew attention of the western investors to Runet in general, the CEO and the co-owner of Mail.ru Group Dmitry Grishin notes.

Assessment in $6-9 billion is fair, "Yandex" earns on the Internet most in Russia and it has the most large audience, the analyst of Finam Leonid Delitsyn says; besides, unlike many other Internet Yandex Companies already paid dividends (for the first time — in 2003 — Vedomosti). All this will allow the share price of "Yandex" to keep when many Internet companies strongly overpriced on a wave of investments into Facebook begin to become cheaper, Delitsyn considers.

Obukhova is inclined to compare the cost of "Yandex" not so much to Mail.ru Group how many with market multiplicators of the Chinese search engine Baidu, like "Yandex", bypassed the western search engines in domestic market. But multiplicators of Baidu should be higher, Delitsyn is convinced: the Chinese market the biggest in the world and investors lay great hopes on it considerably, than on Russian.

Structure of shareholders of the company before carrying out the IPO:

Golden share - Sberbank

Before the IPO UFG Group and Almaz Capital Russia Fund possessed in total 4.06% of voting shares, including 8.14% of stocks of the class "A". The controlling shareholder of UFG Group is the board member of Yandex Charles Ryan, he is a senior partner of Almaz Capital.

The largest shareholder of Yandex were funds of the Baring Vostok Private Equity group. Owners of fund were Rahul Bhasin, Chris Brotchie, Michael Calvey, John Dare, Terry English, Jean Salata, Rory Landman and Antonio Bonchristiano. A share in fund also his partner, the board member of Yandex Elena Ivashcheeva owns.

Notification on plans of carrying out the IPO

On April 28, 2011 it became known that the Dutch company Yandex — the only shareholder of Russian "Yandex" - sent to the American Securities Commission the notification on intention to carry out the IPO. Share placing will take place at the NASDAQ exchange. The volume and the price of placement are not determined yet, the source close to the company says that it will happen in May, 2011. The voting stocks of the company will be directed to the exchange.

Part of placement will be made by actions of the existing shareholders, a part — again issued shares. Earlier sources of news agencies told that all company was estimated at $6-9 billion, and from the IPO is going to gain about $1 billion.

The chief coordinator of the IPO selected Morgan Stanley. It together with Deutsche Bank and Goldman Sachs will be organizers of placement. Piper Jaffray &s Co will become collaborators. and Pacific Crest Securities LLC.

In anticipation of the IPO capital stock of Yandex will consist of 80 million actions of the class "A" and 216 actions of the class "B". Only stocks of class "A" will be output to the exchange, each of which has one voice. One action of the class "B" has 10 voices, but, according to the shareholders' agreement, such securities can be sold only to "Yandex".

The shareholder has also the right to exchange the share of the class "B" for one action of the class "A" and one — the class "C". The last has 9 voices, but is subject to voluntary conveyance to "Yandex" with the subsequent repayment.

The CEO to "Yandex" Volozhu's Arcadia possesses 19.77% of voting shares of Yandex (including 4.5% of shares which the offshore Volozha Belka Holdinbgs holds through structure of BC&B Holdings, joint with Baring Vostok). To the technical director Ilya Segalovich — 4.14%. The board member of Yandex, the former head of administrations of Boris Yeltsin and Vladimir Putin Alexander Voloshin within three months after carrying out the IPO can implement the offer on acquisition of 21.9 thousand actions of the class "A", and then — on 28.1 thousand actions.

The largest shareholder of Yandex are funds of the Baring Vostok Private Equity group: they possess 23.89% of voting shares, including 18.74% of stocks of the class "A". Owners of fund are Rahul Bhasin, Chris Brotchie, Michael Calvey, John Dare, Terry English, Jean Salata, Rory Landman and Antonio Bonchristiano. A share in fund also his partner, the board member of Yandex Elena Ivashcheeva owns.

And here the Tiger Global Holdings fund decided to use the right of conversion of stocks of the class "B" into a class "A, as a result a share of the voting shares owned by it will be reduced from 20.24% to 2.76%, but the fund will become the largest shareholder of the class "A" from shares of 70.9%. The main owner of fund is Charles Koleman (Charles P. Coleman). Shares in Tiger Gobal also belong to Scott Shleifer, Feroz Dewan and Lee Fixel.

UFG Group and Almaz Capital Russia Fund possess in total 4.06% of voting shares, including 8.14% of stocks of the class "A". The controlling shareholder of UFG Group is the board member of Yandex Charles Ryan, he is a senior partner of Almaz Capital. The large voting shares in Yandex also Roth Advisors (6.42%) and International Financial Corporation (6.12%) own.

By the main competitor of "Yandex" considers Google which position in the Internet market as assume in the company, will be strengthened including at the expense of the mobile platform Android. The largest local competitor in "Yandex" call Mail.ru, besides, the company expects the competition from social networks "Odnoklassniki". VKontakte, Facebook, etc.

Risks of development

The company warned investors that if the Government of the Russian Federation implements plans for creation of "national search engine", it will also lead to decrease in a share of "Yandex".

Among the risk factors called "Yandex" It should be noted search spam, pseudo-cliques on advertizing banners and use of Yandex.Money for fraudulent transactions, online casino, sale of a child pornography and other illegal transactions. Also the company warned investors that as its office is in the center of Moscow, it can limit opportunities for growth of the company because of the high cost of lease.

Start of the new search Reykjavík platform

On August 16, 2011 "Yandex" started the new search platform which received the name "Reykjavík". It considers language preferences of the user: "Now people who look for English-speaking resources more often will see more links to them and vice versa in search results". In "Yandex" call this step the first in the direction of personalisation of search.

"According to the statistics "Yandex", most of users prefer answers on a mother tongue. But there are also those who look for English-language answers — Denis Raskovalov, the head of department of development of quality of search says. — We experimented much, trying to find the best method to satisfy requirements of both those, and others. As a result we decided to teach search to consider language preferences of users and to adapt to them".

Reykjavík pays attention only to requests in English. It filters a Latin transliteration of Russian-speaking requests, the addresses of the websites, keyboard layout pattern errors, etc.

At the same time the English-speaking question not always means search of the same answer, specify in the company. For example, on requests [beatles] or [rothko] of people can look for also the Russian websites. Reykjavík considers whether often the user opens from search results of the web page in English.

"Information on whether English-speaking resources are necessary to the user, is used when ranging. And if are necessary, the person sees more links to them among the first search results", - say in "Yandex".

On the middle of August, 2011, answers in English prefer about 8% of users of "Yandex", claim in the Internet company.

The 6th place in top-10 world search engines

According to comScore for June, 2011, "Yandex" takes the 6th place in Top-10 of world search systems. In April, 2011 reported to comScore that in Russia using "Yandex" in a month 2.5 billion search queries whereas in the rest of the world for the same period to the searcher there were 300 million addresses were made (however, their considerable part probably arrived from residents of the CIS countries).

Decrease in a share of search queries because of growth of popularity of the Chrome browser

The Chrome browser gains popularity — according to Liveinternet, for September, 2011 16% of the Russian Internet users use it. Therefore in September, 2011 the share of search queries of "Yandex" in Russia decreased to 61% (in August — 63%). After the message about it at a meeting of Volozha with investors the security price of the company on NASDAQ dropped by 13%, up to $22.9. On Friday, September 30, quotations fell off up to $20.5 for an action.

Increase in prices for banners

On December 5, 2011 it became known that announced "Yandex" increase in prices for media advertizing in 2012 on average for 28% while the Mail.ru company is not going to change the quotations at all.

As the development director of media products of "Yandex" Lev Glazer reported Vedomosti, the company changes the advertizing price list of times a year, and in 2010 the media advertizing of "Yandex" rose in price for 24%[9]. In 2012 the average price on banners will grow by 28%, and advertizing on the homepage of the searcher at the conclusion of the annual contract will rise in price for 67%.

Increase in prices for advertizing in "Yandex" is explained with the fact that demand for placement on pages of the website in 2011 exceeded possibilities of the searcher. As add to the companies, for 2012 "Yandex" already has arrangements with some clients on new quotations.

Other Russian Internet company Mail.ru of the price in 2012 is not going to raise. The company explains such approach with the fact that because of not clear situation in economy advertisers budget zero media inflation for the next year. Besides, in 2011, in comparison with 2010, the Mail.ru company already raised the prices for 50%.

Image:Доли сайтов России в баннернойи рекламе 2004-2011.PNG

As specify Vedomosti with reference to the purchasing director in not television media of Vivaki Russia company Alexey Vasilenko, in the market of media advertizing at the end of 2011 recession therefore the most part of the websites will not raise the prices of banners is observed. At the same time "Yandex" as considers Vasilenko, is guided by permanent growth in the market of contextual advertizing in which it is the leader and therefore raises the prices and in other areas.

Yandex Labs reorganization

On December 13, 2011 "Yandex" announced reorganization in the division Yandex Labs located in Silicon Valley, the USA.

"We will reorganize our office Yandex Labs into Palo Alto for the purpose of increase in efficiency. Yandex Labs will be engaged only in quality of English-language search now. All functions which are not connected with English-language search will be distributed between other offices of development of "Yandex", - Ochir Mandzhikov reported CNews, the press secretary[9].

According to the Roem.ru edition, within reorganization of office in Palo Alto the company dismissed nine employees of Yandex Labs, and dismissal was urgent. Among lost work there were famous scientists and engineers.

2010

Start of Yandex.com - search in the foreign websites

In May, 2010 the company started search only in the foreign websites - Yandex.com.

Start of the searcher in Belarus

In 2010 "Yandex" opened the portal for Belarus (yandex.by), started search in the foreign websites (yandex.com), regional search for Ukraine and a number of specialized services — Yandex. Real estate, Yandex. Work, Yandex. Music, Yandex. Services.

Start of search Range technology

In 2010 the search Range technology was implemented. It allows to consider needs of users which were not obviously formulated in a request.

Growth of revenue by 43%, shares in search up to 64%

In 2010 revenue of "Yandex" made 12.5 billion rubles or $410 million (growth in a year - 43%), from them 88% were received from contextual advertizing. In relation to 2009 sales of contextual advertizing grew by 45%. The number of advertisers of "Yandex" increased for 2010 more than by 40%, having made more than 180 thousand in 2010.

For comparison, according to AKAR, for the first nine months 2010 the general growth of the advertizing market in Russia was 14%, the market of Internet advertizing grew by 37%.

Operating profit of "Yandex" grew by 58% to 4.823 billion rub, net profit — 3.817 billion rub (growth also was 58%).

On accounts of users of a payment system "Yaneks. Money" as of the end of March there were 700 million rubles.

"Increase in a share of search of "Yandex" which we achieved thanks to full-time employment over product quality became the main result of year for us — the CEO of the company Arkady Volozh says. — Significant growth in revenues of the company in 2010 reflects two important trends — revival of small and medium business after crisis and overflowing of advertizing budgets from other channels in the Internet".

According to LiveInternet, for 2010 the share of search of "Yandex" increased in Russia by 5.2 items (to 64.1% in December, 2010). The share of Google was reduced by 1.9 items to 21.5%, Mail.ru — by 2.4 items to 7.6%, Rambler — by 1.6 items to 1.8%.

In Ukraine "Yandex" grew by 6.2 items (up to 27%), in Kazakhstan — by 4.6 items (up to 24.4%). According to comScore, from November, 2009 to November, 2010 the monthly audience of "Yandex" grew by 64%, in November, 2010 it made more than 54 million users.

2009

1.29 billion requests a month

Daily audience of Yandex — nine million people. The audience of "Yandex" for February, 2009 made 18.4 million (data of TNS). In July, 2009 "Yandex" serviced 1.29 billion search queries whereas a year ago this indicator was 663 million (comScore).

Minority shareholders sell shares to large funds

Small shareholders of "Yandex" sold 9% of the search engine to large — Baring Vostok and Tiger Management funds and also UFG Asset Management. Buyers estimated "Yandex" at $1.1 billion — it the minimum is three times cheaper, than before crisis.

9% of shares were taken by UFG Asset Management, Baring Vostok Capital Partners (BVCP) and Tiger Global Management. Sold — managers and founders of "Yandex", the investment banker says. The employee of "Yandex" assures that shares were sold by generally private investors, but not managers.

Among sellers — the president of IBS Group Anatoly Karachinsky owning 1% of "Yandex". Shares were sold by the Oradell Capital fund founded by IBS, Karachinsky specified. Now Oradell completely left "Yandex".

For the transaction of "Yandex" it was estimated at $1.1 billion, Karachinsky says. This assessment is confirmed also by the employee of "Yandex". So for a year of "Yandex" fell in price at least three times.

The employee of "Yandex" says that to the transaction of BVCP, Runet Holdings and Tiger possessed about 50%, and now they together with UFG possess about 60%. UFG was going to purchase about 5% of "Yandex", told sources, close to it.

Assessment of "Yandex" is adequate, corresponds to multiplicators of its world analogs — Google and Altaba (before Yahoo), the partner of Almaz Capital fund Alexander Galitsky considers.

Golden share to Sberbank

That state-controlled Sberbank can receive "golden share" of the search system "Yandex", largest in Runet, in the middle of April, 2009 Vedomosti were told two sources in the Russian state banks. The project of transfer of "golden share" of "Yandex" to the State Bank was discussed with the Deputy of the Chief of the Presidential Administration Vladislav Surkov, confirmed the source close to Presidential Administration. In Surkov's reception of the correspondent of Vedomosti addressed to his adviser Konstantin Kostin who refused comments.

"Yandex" and Sberbank announced the transaction the fact only on September 23, 2009. Parent company of "Yandex" — the Dutch Yandex N. V. issued the priority stock. "Yandex" held a competition between several state companies, and won against Sberbank it as "state, public and not having direct interests on the Internet and media". It received the share at the symbolical price — 1 euro.

The action grants only one right: veto sale more than 25% of stocks of "Yandex". Such mechanism: if someone from shareholders collects an essential share block and will decide to sell it, this question will be taken out on Board of Directors of "Yandex", that will inform Sberbank and the bank board will make the decision, to permit the transaction or to block, the representative of "Yandex" Mikhail Ushakov tells. In Board of Directors Sberbank will have no place, he will not participate in company management. Sberbank will not be able to sell the priority share without the consent of Board of Directors of "Yandex".

The similar mechanism was entered in Rosgosstrakh recently. The president Medvedev excluded it from the list of the strategic enterprises, and in exchange the state received the "golden share" granting the veto on strategic questions.

Transfer the stock to the State Bank — an initiative of "Yandex", Ushakov says. Such scheme, according to him, will allow to save the principles of management underlain by founders: when any group of shareholders cannot make decisions on development of the company solely. The source, close to shareholders of "Yandex", adds: it, on the one hand, will protect "Yandex" from unfriendly absorption, with another — guarantees that it will not have unclear to the state "co-investor".

"Such solution shareholders of Yandex N. V. accepted for<...> ensuring transparency at change of a shareholding structure within preparation for initial public offering", the press release says.

Does not open plans for placement of "Yandex". The company was going to be placed for NASDAQ last fall, but it was prevented by crisis.

Matriksnet technology

In 2009 Yandex implemented a new method of machine learning Matriksnet. Thanks to this method became possible to consider by search many times more factors and their combinations. It allowed to make search by more exact and also to improve quality of answers to separate classes of requests. Thanks to this Yandex it was succeeded to make quantum leap in search work.

2008

Canceling of the IPO because of the beginning of financial crisis

Was going to carry out by fall of 2008 of "Yandex" the IPO on NASDAQ, but because of crisis cancelled it. Investment banks which had to participate in placement estimated the company at $5 billion, and analytics — in $3 billion. The analyst of Gazprombank Anna Kurbatova found it possible to estimate "Yandex", proceeding from multiplicators on which shares of the similar foreign companies are traded. Capitalization of the American Altaba (before Yahoo) made 39.6 indicators of its net profit, and Google — 24.4. Proceeding from these Yandex values could cost $2.7-4.4 billion. But net profit under RAS can be unrepresentative, Kurbatova warns. Does not open net profit on the US GAAP company.

Alisher Usmanov could not acquire 10% of shares

Alisher Usmanov agreed about purchase of 10% of Yandex in September, 2008, but the transaction then did not take place.

Opening of School of data analysis

In 2008 Yandex opened School of data analysis — free biennial rates which train specialists in the field of processing and data analysis and information extraction from the Internet. Based on School of data analysis in MIPT the Data analysis department was organized. Besides, Yandex participates in the organization of the scientific Olympic Games for school and university students. Thus Yandex creates and supports the scientific environment favorable for emergence of new technologies in Russia.

The first hit in ten the largest searchers of the planet

At the beginning of 2008 "Yandex" for the first time got to ten the largest searchers of the planet - its market share by the number of search queries in the world made 0.9%, analysts of ComScore counted.

2006: The first remote office of development in St. Petersburg

In 2006 Yandex opened the first remote office of development — in St. Petersburg.

2005: Office in Ukraine

In 2005 Yandex went out of Russia, having opened representation in Ukraine. The task of the Ukrainian office consisted and consists in creating services especially for the Ukrainian audience and to sell advertizing in the country.

2002-2003: Self-sufficiency and the first dividends

Yandex Company reached self-sufficiency in November, 2002 — for half a year earlier, than was planned. In August, 2002 revenues of the company exceeded expenses, all last months 2002 Yandex finished with plus. Since then the company always was profitable.

In the summer of 2003 the Board of Directors of the company made the decision on dividend payout, the first in the Russian Internet.

2001: Yandex.Direct

In 2001 Yandex opened Yandex.Direct. It is the system of automatic placement of contextual advertizing. Using Direkt any person can directly, place without intermediaries on Yandex the advertizing. For the first year of existence of Direkt advertizing on Yandex was placed by 2500 advertisers.

2000: Formation of Yandex Company

Yandex Company was created in 2000. Shareholders of CompTek – the company in which the search engine Yandex was created became her founders. The ru-Net Holdings company invested in Yandex $5.28 million for 35.72% of the company. Also managers of Yandex and the leading developers of the search system were among shareholders. Arkady Volozh became the CEO of the company.

In 2000 to year thought up the slogan "There Will Be Everything". Same year Yandex started the first advertizing of the website on the Russian television.

The first yandeksovy computers called letters of the old Russian alphabet – "az", Buks, "conduct", etc. At the working moments it sounded so: "the earth fell", "on good the place came to an end". Then the Russian alphabet came to an end, within a week there was a discussion what alphabet will be the following. Selected Armenian.

The first two servers of Yandex stood under legs at the first system administrator. The third server under legs was not located, it was necessary to move to a hosting to MTU. In 2000 Yandex constructed the first own server, and since then all servers are in own data centers.

1998: The first contextual banner

In 1998 on Yandex.ru for the first time there was a contextual advertizing — the advertizing corresponding to the user's request. At this method of demonstration advertizing is seen only by its target audience. The contextual advertizing became one of additional answers to questions of users, and in the subsequent – the main business model of Yandex Company.

1997: Start of Yandex.ru

In the spring of 1997 appeared Yandex.CD — document retrieval on CD ROM, and then Yandex.Lib — full-function library Yandex for embedding in different applications and databases.

In half a year it became obvious that nothing separates CompTek from creation of own global search engine. The volume of Runet was then only several gigabyte. In the fall of 1997 Yandex.Ru was open.

So the first option of Yandex in 1997 looked
So the first option of Yandex in 1997 looked
From the moment of the basis Yandex cooperates with Artemy Lebedev's Studio. Specialists
of studio develop designs of the websites, polygraphy and business graphics for the company. The greatest number of works is executed by Roma Voronezhsky, however almost all leading designers of studio took part in works "on Yandex".

When developing the first design of the homepage of Yandex it was unclear, than it to decorate, except a search line. Thought up Fairy tales and Numbers. The logo of Yandex was drawn at an angle, and the staff of the company received letters: "Really could not a piece of paper exactly put in the scanner?".

Official birthday of the Yandex search engine.Ru – on September 23, 1997. This day a system was announced at the Softool exhibition in Moscow.

The main distinctive features of Yandex.Ru at that time were check of uniqueness of documents (an exception of copies in different codings) and also key properties of search core Yandex, namely:

  • accounting of morphology of Russian (including search in an exact word form),
  • search taking into account distance (including within the paragraph, an exact phrase), and
  • carefully developed relevance assessment algorithm (compliance of the answer to a request) considering not only the number of words of a request, found in the text, but also "contrast" of a word (its relative frequency for this document), distance between words, and word provision in the document.

Need to support work of Yandex.Ru in the conditions of large volumes and heavy loads (several requests per second) leads to optimization of algorithms which are used then also in other products Yandex.

1993: Entry into CompTek

In 1993 the Arcadia became division of CompTek company (Komptek). In 1993 — 1994 software technologies were significantly improved thanks to cooperation with Yury Apresyan's laboratory (Institute of problems of information transfer of RAS). In particular, the dictionary providing search taking into account Russian morphology occupied only 300 KB, i.e. was entirely loaded in RAM and worked very quickly. From this point the user could set any forms of words in a request.

On the basis of new technology in 1994 "The bible computer reference book" (the information retrieval system ensuring functioning with the Synodal Translation of Shabby and New Precepts) was created. In 1995 the "Academic Publication of Classics on CD ROM" project developed together with STC Information registry and IMLI of M. Gorky RAS with assistance of Roskominform started. For this project the universal Argonaut technology which included both means of a marking and display of texts, and navigation aids and also different search — both text, and attribute was created. On the basis of this technology there were 3 editions — the reference book of the standards "Inform — the Standard", the electronic scientific publication "A.S. Griboyedov" and "Pushkin. Electronic fund of the Russian classical literature". Also the dictionary of language of Griboyedov was created.

The word "Yandex" was thought up by Ilya Segalovich, the current director of Yandex of technologies, and the CEO of the company — Arkady Volozh in 1993. Ilya wrote out different derivative of the words describing a technology essence. As a result there was a yandex option.

"Yandex" means Language index, or if in English, "Yandex" — "Yet Another indexer". For years of public existence Yandex there were also other interpretation. For example, if in the word "Index" to translate from English the first letter ("I" — "I"), it will turn out "Yandex".

1996: The first products of the Yandex series

At the beginning of 1996 the algorithm of creation of hypotheses was developed. From now on morphological analysis stopped being is tied to the dictionary — if there is no word in the dictionary, then there are the most similar to it dictionary words and by them the inflection model is under construction.

In the summer of 1996 the management of CompTek and developers of the search system came to a conclusion that development of the technology is more important and more interesting, than creation of applied products based on search. Researches of the market showed timeliness and big perspectives of search technologies.

At the Netcom exhibition' on October 96, 18, 1996, CompTek announced the first products of the Yandex series (Yandex.Site, Yandex.Dict). Yandex.Site — search in the website. Yandex.Dict, morphological expansion of a request, is used still for, for example, transfer of a request for AltaVista though today it is already not so relevant — AltaVista indexes the Russian Internet much worse, than the Russian search engines.

1990: The Arcadia is the beginning of development of search software

The history "Yandex" began in 1990 with development of the search software in Arcadia company. In two years of works two information retrieval systems — the International Classification of Inventions, the 4 and 5 edition, the Qualifier of Goods and Services and search in the Bible which considered Russian morphology were created. Both systems worked under DOS and allowed to carry out search, selecting words from the set dictionary, using standard logical operators.

Notes