Russia Stops Google’s Expansion
Sunday, October 26th, 2008 | Author: techconsumer

Although Sergey Brin is the Russian entrepreneur who helped start Google, he’s having a tough time convincing his former country men to approve a business deal with Google. The deal, valued at $140 million, was rejected by The Russian Federal Antimonopoly Service (FAS).

Google was attempting to buy the Russian Internet advertising gian Zao Begun, currently partially owned by Rambler Media. Zao currently serves 143,000 Russian language sites. The proposed acquisition would enable Google to expand its advertising reach into Europe’s fastest growing Internet market.

Rambler is Google’s primary competitor  in Russia’s Internet market. Rambler wants to incorporate Google’s AdSense ads in its own services, to take advantage of Russia’s 27% annual growth rate of the online community. Additionally, Rambler was actually planning to entirely buy out the entire company from Finama Bannatyne and only then sell it to Google.

ComScore, a web statistics service, is estimating that only 14% of the 142 million Russians are online. As a result, rejection by FAS is a big hurdle for Google’s attempts at an eastern expansion.

Category: Tech Reviews