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Prime investor Runet and his packages

Alisher Usmanov · investments in RuNet · e-commerce · it-companies

Prime investor Runet and his packages

    The article is not a laudatory ode to Usmanov. And not his criticism. And an attempt to understand the harmfulness and usefulness of this person for the Russian Internet business.

    Here you will not find anything about Usmanov, the “political (or non-political) prisoner”. Let the main aggressor of his reputation, the former British ambassador to Uzbekistan, Craig Murray , deal with this . Although the criminal past and the relationship with the relevant elements could easily explain the success of Alisher Burkhanovich in the 90s. But we will adhere to officially adopted documents, such as the decision of the Supreme Court of Uzbekistan of 2000 on the rehabilitation of Usmanov and the fabrication of his criminal case. And for the position of his lawyers. You never know - the Internet is cramped. And Craig Murray's blog in those early years of investigation was covered up.And with the Internet business, this past has little in common. In general, everyone in life makes mistakes or is in the wrong place at the wrong time. And a definite plus is the fact that in 1980 the place where Usmanov ended up was probably the only time was not that. In the 21st century, Usmanov finds himself in the right place with every step he takes. So.

    Photo from the site euromag.ru. Alisher Usmanov. Follow the movements of capital and ... the elbow - under it - “Read more”

    “Well then, Yura, take on historical responsibility, write down how much Facebook will cost in five years,” he wrote - up to 50 billion. There is a small subscript with my hand - from 50 to 100 billion. My predictions came true, ”- voice, the timbre below which you still have to search, calmly gives out information about the next prediction of its owner.

    Prediction is true, but with this voice you can communicate any nonsense, and they will believe in it anyway, because it will sound convincing and strong, however it is unlikely to be used for such short-sighted nonsense. Earlier this voice was considered the first billion earned. Then the account got bored, and the duties were delegated to the treasurer. But the voice is just one detail of a charismatic personality. Where everything else is more important. For Internet entrepreneurs, for example, whether they want to or not, this person’s interest in their company is very important. And this gives rise to both fear and pride. Fear - because, most likely, you have to agree to the offer following the expressed interest - only Yandex could get away from it in due time. Pride - for his company, because he is the number one investor in Runet. Alisher Burkhanovich Usmanov.

    Package, briquette, package again


    Usmanov’s main business is Metalloinvest holding. The holding company is owned by USM Holdings Ltd , whose shares belong to Usmanov (60%), pensioner Vladimir Skoch (30%) - by the way, the richest pensioner of Russia, concurrently, the father of the deputy Andrei Skoch, with whom Usmanov began his ascent; as well as Iranian Farhad Moshiri (10%), a longtime acquaintance of AB, in the late 90s they even traveled to London together - insured political risks for former President Yeltsin. Usmanov Metalloinvest collected bit by bit all the 2000s. First Oskol plant, then Lebedinsky, Mikhailovsky and Ural Steel. Around this skeleton base, then very quickly and the meat grew overgrown.


    Photo from theguardian.com. The owner of the letter “S” in USM Holdings Andrey Skoch (bottom right) and some “strangers”.

    Usmanov is a diverse person. But very predictable. In what respect. Whatever business he undertook, whether it be plastic bags, cigarettes, iron briquettes, in a fairly short time he predictably received stunning profits, many times greater than investments. But in one case, he never sat out for a long time, because he understood: Russia is not stable either legislatively or executively. In his own words, power in Russia in the 90s was associated with a windy woman - she herself did not know what she wanted. The exception was metallurgy, for the development of which he received a strong parting word from the state, grateful to Usmanov for the return of many significant assets of gas companies under the wing of Gazprom in the early 2000s. Metallurgy is a necessary and strategic matter. And A.B. since the 90s, he called on his partners to invest in something like that. Today, Metalloinvest is one of the largest producers of hot briquette iron and pellets in the world, and the production of iron ore and steel does not lag behind. During the crisis, demand for a number of holding products fell, revenue declined catastrophically, but more on that later and a little later.


    Metalloinvest Holding Indicators

    I (hu) ndex


    Starting his first big business with plastic bags, Usmanov in 2008 seriously took a great interest in security packages in the Internet industry.
    Could get carried away even earlier. During the period of the 2001 dot-com crisis, Usmanov tried to acquire a much cheaper search engine Yahoo !, however, none of the banks decided to give out a loan for such a risky purchase. The value of the company's assets has since grown from $ 2.3 billion to $ 61.7 billion (2014). Net profit also steadily grew and turned out to be negative only in 2015 - minus $ 4.4 billion (in 2014 - $ 7.5 billion). Similarly, A.B. things were in those years with the Dutch metallurgical company Corus. Usmanov could get funds for the acquisition of her depreciated shares only from acquaintances (including the head of Petrocommerce Bank, as well as presidential aide Igor Shuvalov, who still did not really believe in the venture). Over the year, $ 319 million of total investments invested grew to $ 614 million in returns.

    Usmanov is a man-winner. But there is one annoyingly blank page in his investment book. Without numbers and banknotes. This page should have Yandex. But it did not grow together, even through state pressure.

    The main argument of Usmanov and Milner before state minds in 2008 (and the state, represented by its individual representatives very closely monitored Yandex's upcoming listing on the stock exchange) was to prevent the absorption of such a large IT company by any unfriendly Russian competitor.


    Photo from tvc.ru. The views of power and business intersect somewhere.

    Volozh and the company had two options - to push, close and, in the end, fall heroically in front of the state machine or go on a dialogue.

    First, they tried to establish a dialogue with potential investors. But when they realized that investors would begin to restore their order, in particular, they would refuse to give options to managers at all levels of Yandex, who owned them, they partially owned the company. When they understood, they came to the conclusion that Yandex would die in the wrong hands, because it was the people in the company that were of primary importance. As Volozh put it: “I collect people, the rest is attached itself.” And Yandex will die, its niche will just be occupied by completely unfriendly Google. The situation was resolved only by gaining allies in the state apparatus, who convinced the relevant people that Yandex was good, honored the interests of the state, and would not sell anyone controlling shares. Now the “golden share”, which gives the right to veto on any dubious Yandex transaction, belongs to Sberbank.

    It is unlikely that this failure disappointed Usmanov. Rather, his partner Yuri Milner, who for almost the entire 2000s tried to acquire Yandex shares. Usmanov has accumulated wisdom from fencers on this score: to win means not to get involved in a fight. To get involved is to be killed.

    Feisberg-Zuckerbuk


    In the fall of 2008, the atmosphere in Metalloinvest was tense. Halving production, selling off recent stocks and free assets to pay off debts. Madness in such circumstances was Usmanov’s proposal to invest up to $ 1 billion on Facebook. Almost all partners were against it - Farhad Moshiri, Vasily Anisimov, only Andrei Skoch remembered the Dutch Corus and the American Yahoo, although he agreed with the others on logic. The situation was aggravated by the fact that this billion would be the last of the few. But Usmanov showed traditional oriental adherence. He came into big business to play on an appropriate scale, as he had promised 15 years before, when he had a dilemma - either to leave for Sakhalin and to fish in calm solitude, or to remain in business.


    Photo from bfm.ru. Sometimes it’s worth looking at things from a different angle.

    Usmanov’s main trick is to adapt to any interest. Understand what this or that party wants. He was repeatedly chosen as a negotiator in any corporate conflict. Be it returning lost assets to Gazprom or selling Lebedinsky GOK. He gracefully, with oriental generosity, resolved conflicts even with direct competitors (as is the case with Megaphone and Friedman's alpha groups).

    With Facebook, the situation is the opposite. Usmanov remained in the shadows. A more Americanized Yuri Milner actually represented the common interests in the purchase. Initially, Milner showed interest in this social network. But he was offered only 1% of the shares. When Yuri Bentsionovich turned to Usmanov, he built a strategy of behavior, thanks to which Facebook agreed already to 10% of the shares. What could the Usmanov-Milner duet Facebook offer? Firstly, deprivation of a seat on the board of directors, and secondly, the right to vote on shares passed to Zuckerberg. This was not necessary for Usmanov and Milner. Not influence, but a stake in a promising company preparing for an IPO, as well as an international reputation. As a result, Usmanov returned his investment in an amount close to 10 times. When buying shares in 2009, the value of the entire social network was estimated at $ 6-10 billion. When the sale reached already $ 100 billion. For a minute, lock again. 2009 year. The crisis. An investment of $ 1 billion. Huge risk and misunderstanding from all sides.



    “I’m not the person who gives everything on trust or on feelings, I study all the companies very well,” Usmanov said in 2012. To study, not to study - but to predict the growth of Facebook in a crisis - this is not rational. This is always a risk. And risk and excitement are irrational. Nevertheless gambling A.B. avoids - never played in a casino, preferring exclusively investment excitement.

    Cyber, Uber, Habr


    Esports is Usmanov’s unexpected investment. In terms of what happened at the end of 2015. And in 2014, Usmanov began to invest. “I don’t want to buy anything anymore, almost. In addition, that will ensure the activities of our philanthropic and charitable programs. " “Almost” - after 2014, it resulted in the purchase of shares in the richest startup Uber and investments in the e-sports startup VirtusPro. The psychology of a working pensioner and an aging oligarch in this perspective is very similar. “I’ll work another year, and retire,” says every employee after 60. So Usmanov once shook himself a period of active activity up to 63-65 years. Therefore, the new “almost”, most likely, just around the corner.


    Photo from the website Kommersant.ru. You can be a participant in the game both inside and outside.

    Usmanov has a rare gift. In Russia, the phenomenon of taking what lies badly is common. He, being only partially Russian, interprets this stereotype in a slightly different way - he takes what lies badly and so far no one needs it. But at the same time he feels that he will soon lie well and will be needed by everyone.

    Esports is promising in that it has recently become a sport, is very popular among young people and is gaining ratings in the media industry. Where there is a large mass, there is always advertising, but there is none yet, representatives of well-known brands (for example, Coca-Cola) have just begun to pay attention to e-sports.

    Usmanov invested $ 100 million in VirtusPro. A specialized stadium for $ 5 million has already been built. At MatchTV in the fall of 2016, the first final of e-sports competitions is shown.

    Uber is another example of Usmanov investing in a company before entering the international stock market. So it was with Facebook, the same thing happened with Alibaba.
    At the same time, A.B already has an Indian competitor Uber - Ola. And the most interesting thing is that in India these services compete very fiercely and even sue each other (in March 2016, Uber filed a complaint about Ola manipulating fake accounts through which fake orders were sent). It will be interesting to see how Usmanov behaves in such conditions, because he is a fan of resolving such conflicts gracefully.

    About the relationship of Usmanov and Habr, let's say only a couple of lines. By and large, they were not there. There was a tension with Milner, Grishin and a number of Mile.ru managers. Denis Kryuchkov already spoke about this very clearly. It is worth noting only that if one day the Habro-community decides to enter the stock market (never say “never”?), Who knows, maybe Usmanov will be nearby, and the presence of this mascot person nearby can be considered almost 100 percent happy, of course, if at all it is possible to calculate happiness as a percentage.

    The main minus


    In addition to the above, Usmanov and his partners from USM Holdings and DST Global simply have an unrealistic amount of investment in Internet projects.

    This is the Chinese Internet retailer Alibaba, investments in which Usmanov turned into a 500% profit. He has already got rid of Alibab's shares, but there is still a competitor to JD.com.

    This is Apple, in which Usmanov held about $ 100 million until 2013.

    Groupon coupon service and Zynga game developer, Arnb real estate rental site, Spotify music service, Twitter, Brazilian “bank killer” Nubank,



    Lastly and most importantly, this is Mail.ru Group, which has combined the largest social networks and dozens of additional services. Until recently, the company was the most expensive in Runet ($ 4 billion), but this year Yandex with $ 7.6 billion bypassed it (more precisely, the cost of the MRG itself fell due to the crisis). Now Mail.ru Grop has also been sold to Megafon, a company controlled by Usman. A loan of 35 billion rubles was allocated from Sberbank until 2024. The shares of Megafon itself until the loan is paid are pledged to Sberbank. Why was this done? The media distinguishes two options - the official one - Megafon with the help of Mail.ru Grop begins to master big data technologies for more effective advertising. Unofficial - Usmanov actually received this loan of 35 billion rubles for himself in order to somehow reanimate Metalloinvest, whose business is now on the verge of loss. There is also a third option - 35 billion. Will sink into offshore on the personal accounts of A.B. But according to this option, it’s better to Navalny - he will remove the next furious and inconvenient film for the official authorities. We are again interested in Internet business.


    Photo from resistance.today. Investor Gennady Timchenko and A.B. When I bought 5, I sold 100 - it's ridiculous. And when it’s the other way around, it’s not for us.

    To summarize this. Usmanov comes and goes, and the companies remain after him. Not to say that they are "feeling bad, sad and lonely." As a rule, they all stand firmly on their feet. We already wrote about the dangers of investments in the pastarticle. Whether they are harmful in the case of Usmanov depends on many factors. For Yandex, as they themselves estimated, yes, and judging by the current place, it’s true — they have their own way. Facebook, Twitter, Uber - rather useful for Usmanov himself - maintain a reputation as a successful investor, allow him to rightfully be on a par with great Western people. Twitter is crashing now, but is it because of Usmanov? Of course not. With eSports, everything is just beginning. The rest of the companies live quite well before and after. As Alisher Burkhanovich said after the next sale of shares, “we must give others the opportunity to make a profit.” This can be appreciated as a whole its place in the Internet business. Usmanov arrived at him in time and will leave him in time - he will not break anything, he will not destroy anything, he will simply take advantage of the moment and the next billion.


    Mark Licinius Crassus. According to some historians - the very first investor.

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