October 23rd, 2008
Russia blocks Google's ad company acquisition
Google’s $140 million acquisition of online ad firm ZAO Begun has been blocked by regulators in Russia, according to a report in the Wall Street Journal.
Google told the WSJ that it was “disappointed” with the decision by the Russian Federal Anti-Monopoly Service and that it’s reviewing the decision. The company said it believes the acquisition will “significantly improve opportunities for Russian users, advertisers and publishers as well as the entire industry.”
The news out of Russia follows the increased scrutiny of a Google-Yahoo ad deal by the U.S. government. That deal, which the companies had expected to close this month, has been delayed.
Rambler Media, a Russian Internet company, owns 50.1 percent of ZAO Begun. Under the agreement announced in July, Rambler planned to buy the half of the firm and sell the whole company to Google, In a statement, Rambler would continue to own 50.1 percent, according to the WSJ.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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