Russia tightens grip on media landscape as Yandex sells homepage, news to rival VK

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Russia tightens grip on media landscape as Yandex sells homepage, news to rival VK

Russia's leading internet firm Yandex on Tuesday said it had agreed to sell its news aggregator and yandex.ru homepage to state-controlled rival VK, a dramatic move that will likely further limit Russians' access to independent media.

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The all-share deal, in which Yandex will acquire 100 per cent of food delivery service Delivery Club, marks a significant shift in Russia's internet landscape, with Yandex effectively passing the reins that steer the distribution of online content to a Kremlin-friendly actor.

Moscow's years-long suppression of independent media sharply intensified after Russia sent tens of thousands of troops into Ukraine on Feb. 24, passing a law banning what it calls "false information" about Russia's armed forces and quashing many organisations' ability to broadcast freely.

"The board and management of Yandex have concluded that the interests of the company's stakeholders...are best served by pursuing the strategic exit from its media businesses and shifting to a focus on other technologies and services," Yandex said in a statement.

Nasdaq-listed Yandex, often referred to as "Russia's Google", has complied in recent years with Moscow's demands and the threat of fines over which publications' stories can feature on its news aggregator, drawing criticism over its effect on media freedom.

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