There has been a drastic operational and entity change in Vkontake in the most recent time. The Russian internet giant has bought this social network site for $1.47 billion. Everyone is astonished whether it is supposed to be a good step or not, but it is surely a news, that is for sure!
Vkontake is a well established social networking site which has come in to being in 2006. Since then it has 92 million active users who use to take this as a media of communication with their peer groups. Despite being available in several languages, it is more preferred among the Russian language speaking people around the world; especially in Russia, Kajagistan, Belarus etc. for its utmost popularity and convenience, it has been familiar among the users with the name “Russian Facebook”.
After Pavel Durov, Vkontake’s main founder had decided to sell it, the Russian Internet organization named Mail.ru has acquired full ownership of this social networking site by purchasing the 48% that it had not been owned by them. It has also bought all the shares in all cash deal from the earlier shareholders of Vkontake named Palagon Limited & Blesmir Development Limited. Considering all these, the total investment of Mial.ru in Vkontake is $2.07 Billion. Going through all the litigation and disputes, an agreement between them has enabled them to reach to a settlement; claimed by Mail.ru. Mail.ru states officially, “UCP, Mail.Ru and Pavel Durov have also agreed that simultaneous with this acquisition all the outstanding litigation and claims concerning VK and related matters between these parties will be dropped with immediate effect”. Dmitry Grishin, the CEO of Mail.ru said, “We are happy to announce the acquisition of 48.01% of VKontakte stake from UCP. The consolidation of 100% of VK and the termination of all outstanding shareholder disputes will allow focus on the product and its further development.” He also announced, “We respect the successful results driven by VK’s team and do not plan any significant changes in the team or the product itself. Moreover, we are ready to give the current team an opportunity to realize their plans and initiatives.” He also did celebrate this occasion with a little remembrance on Instagram.
Being the most famous and popular social networking site in Russia, Vkontake has been at the main center of the playground played by the two different controversial currents. By purchasing this site, Mail.ru is expected to pick up a huge profit as Vkontake’s revenues has gone up to 14% to RUB3.8 billion ($98 million) with an exact net profit of RUB 53 million ($1.3 million). In the first six months of 2014.
In an official announcement Pavel Durov said, “I welcome the decision of my former partners to abandon their claims toward Telegram and to transfer the American entities under my control,” Durov also said, “For my part I acknowledge the dismissal of claims against UCP and congratulate all parties involved in the settlement”.