Yandex NV (NASDAQ: YNDX) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced a deal with Uber that is overwhelmingly exciting to investors. Of course, this is leading to gains in the value of the stock, which prompted our friends at Trade Ideas to alert us to the movement. At the moment (10:41), YNDX is trading at $31.34 per share after a gain of $4.10 per share (15.00%) thus far today.

YNDX Gains On Deal With Uber

As mentioned above, Yandex is having an incredibly strong day in the market today after announcing that it has entered into an agreement with Uber. Under the agreement, the two companies will combine their ride sharing businesses in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia. As a result of the agreement, a new company known as NewCo will be formed.

The agreement states that Uber has agreed to invest $225 million into the new company and YNDX will invest $100 million. The new company is valued at $3.725 billion on a post-money basis. Once the deal is closed, YNDX will own approximately 59.3% of the company with Uber owning about 36.6% of the company with 4.1% of the company being owned by employees. In a statement, Tigran Khudaverdyan of Yandex.Taxi, had the following to offer:

This combination greatly enhances Yandex's ability to offer better quality service to our riders and drivers, to quickly expand our services to new regions, and to build a sustainable business... The combined companies currently perform over 35 million rides a month while growing over 400% year-over-year. Since founding Yandex.Taxi in 2011, we have connected tens of millions of riders and drivers to become the largest and most trusted ridesharing buainess in Russia and neighboring countries. We are excited to expand on this foundation in collaboration with Uber.”

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What We'll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on YNDX and NewCo. While the agreement is subject to customary closing conditions, this could prove to be a big win for the company if it does indeed close. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!

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Hey everyone, I'm Joshua Rodriguez. I'm the founder of CNA Finance as well as several other sites. If you'd like to connect with me, follow me on or Twitter! I'd love to see ya there. Also, if you're looking for top quality content for your blog, news outlet, or any other website for that matter, please reach out to me at Info@CNAFin.com! Legal Disclaimer - CNA Finance is NOT an investment advisor. All investment decisions should be well thought out and made with the help of a an investment advisor. For our full legal disclaimer, please scroll to the bottom right of this page.

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