Naspers Takes Full Control of Russian Classifieds Site Avito in $1.16B Deal
South Africa's Naspers has gone from a media company to an international venture capitalist. IN addition, it recently purchased Russia-based classifieds site, Avito for $1.16B. Now that it owns 99.6% of the company, Naspers hopes to get in on the high-potential market that recently generated Avito $157.5M in six months and is only expected to grow. The purchase was based off of the high internet and smartphone penetration, the unclaimed 73% of the market, and bright future of classifieds in Europe.
- Media company, Naspers, acquired Russian classifieds site, Avito, for $1.16B
- There is only 27% of the market claimed by competitors leaving Naspers plenty of room for growth
- Using the future profit from Avito, Nasper plans to expand services and business
- If you were a consultant for Naspers, would you suggest they sell Avito when they can make a profit or keep it? Why?
- What does this acquisition tell you about international business opportunities?