Yandex NV (NASDAQ:YNDX) Sidesteps Potential Trouble From Stolen Source Code
Authorities in Russia have saved Yandex NV (NASDAQ:YNDX) from a potentially catastrophic deal. An employee of the leading Russian search engine stole source code from the company and was seeking to sell the secret for a paltry $29,000.Dmitry Korobov was arrested when he set out to meet a potential buyer of the source code.
Korobov has been handed a two-year sentence (suspended) for the offense. But his bungled transaction greatly saved Yandex NV (NASDAQ:YNDX). The damage that would have resulted if the deal succeeded would have been unimaginable for the Russian leading Internet search engine.
Funding a startup
It is not currently clear when and how Korobov stole the source code from his employer, but it is said his interest was to raise funds for his startup. Driven with specific ambition, Korobov only sought about $29,000 for the source code he owned. But that was almost like giving away the huge secret for free. Because had it go into the wrong hands, the deal would have significantly changed the business dynamics for Yandex – for the worst.
Korobov reportedly sought buyers for the stolen Yandex NV (NASDAQ:YNDX)source code offline and online. By the time he was going to meet a potential client, Russian security intelligence had already marked him as a person of interest.
Secret worth billions of rubles
It is said that the secret that Korobov held had a potential impact to the tune of billions of rubles on the business of Yandex.
As Yandex NV (NASDAQ:YNDX) celebrates the prevention of a toxic deal that would have significantly hurt its business, the company’s challenges aren’t over. With Google threatening to displace it as the leading search provider in Russia, Yandex must find new ways to widen lead against the competition or at least strongly defend its market share. Yandex controls 57% of Russia’s search market while Google controls 35% of the market. It has been cited that Google’s penetration in the market could benefit from more Russians who are learning English online.
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