Russian Yandex opens office in U.S.

Yandex announced it is opening an office in the US. It will be headed by Vish Makhidjani who earlier headed the Search at the Yahoo. Experts say Yandex is thereby trying to get closer to American investors.

Yandex Laboratories, as it calls itself in the US, hasn?t opened yet. It is going to be located in San-Francisco?s Silicon Valley.

By late 2008 Yandex is going to employ 10 people in the US. "We need professionals and we will employ them wherever we find them", said the company?s Director General Arkady Volozh. The US office will be headed by Vish Makhijani, former Senior Vice President and General Manager of Search at Yahoo.

Makhijani worked in Yahoo for the recent five years. Led by Makhijani the company developed the Yahoo Answers, Yahoo Local, Yahoo Shopping, Yahoo Personals, and Yahoo Travel services. In 2003 he ran a deal on the purchase of Overture, which places ads within search results.

Yandex said their American staff members will be developing search technologies together with their Russian and Ukrainian colleagues. Among other things the company?s planning to improve the world internet search.

The US office is the ninth on Yandex?s list. Apart from Moscow where it has three offices there are also offices in St. Petersburg, Yekaterinburg, Odessa, and Simferopol.

Experts say opening its American office Yandex is trying to get closer to investors. "It is good to be on investors? territory if you want to get closer to them", said Finam Consultant Leonid Delitsin. "Investors shouldn?t fear Yandex, but become familiar with it". "Also, the US office will boost the company?s value at IPO", said Mikhail Chupa, Director of Microsoft Rus online services.

"As the financial side is concerned opening an office in the US might be a rather costly thing to do. And especially that paying to qualified personnel in the US is expensive", Mail.ru Director General Dmitry Grishin believes. Mr. Delitsin in his turn said that a professional in the Silicon Valley would ask nearly $100-$150 thousand. It means the company would be paying some $1-$1,5m annually to its ten stuff members based in the US. And considering that it is supposed to support the office itself and reimburse the investor Yandex will have to spend some $3m, Finam?s expert believes.

sections: Hi-Tech