Russia’s VK Is Considering the Purchase of Avito

Russia’s VK Is Considering the Purchase of Avito
Photo: https://www.ferra.ru/news/techlife/novym-vladelcem-avito-mozhet-stat-vk-15-06-2022.htm 15.06.2022 133

VK is in talks with Dutch Prosus to buy Avito, Bloomberg reported. Another possible bidder is businessman Vladimir Potanin. 

It became known back in May that Prosus wanted to sell Avito. At that time Bloomberg estimated Avito at $6 billion (about 340 billion rubles). Now, after the outbreak of hostilities in Ukraine, analysts estimate the value of the company at 67 to 100 billion rubles.

According to the source of Bloomberg, Prosus is in talks with VK to sell Avito, but there is no agreement on the deal yet. Apart from Avito, Prosus may also sell its 25.7% stake in VK holding.

Avito is now the most popular online classifieds platform in Russia. According to VK, Avito accounted for half of the entire ad service market in 2020. According to data cited by RBC, the platform has a daily audience of 22 million people. The number of active ads on Avito exceeds 90 million. For the entire 2021 revenue of the Russian legal entity of the service amounted to 42.6 billion rubles, net profit - 14.4 billion rubles. 

According to experts, the purchase of Avito corresponds to the strategy of VK under the new shareholders: to gather all the services around Vkontakte and make the social network the main Russian platform, where users will spend more and more time.

digital markets  Russia 

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