Yahoo's email service in China to close in August

Apr 22, 2013

Yahoo's email service in China will close this summer as part of an arrangement worked out with its partner in that country, Alibaba Group.

The service is scheduled to close Aug. 19. Yahoo is recommending users of its free email service in China transfer their accounts to another provider such as Aliyun, an email alternative offered by .

Yahoo Inc., based in Sunnyvale, California, has been phasing out of China since 2005 when it turned its website, email and other services over to Alibaba. As part of that deal, Yahoo paid $1 billion for a 40 percent stake in Alibaba, one of China's biggest Internet companies.

It has proven to be an astute investment. Yahoo reaped a $7.6 billion windfall by selling half its stake back to Alibaba last year. Yahoo's remaining stake in Alibaba is now worth even more—about $14 billion by one analyst's estimate.

Alibaba is expected to go public within the next two years, giving Yahoo an opportunity to sell more of its holdings.

The closure of Yahoo's email service in China comes at the same time that the company has been shutting down some of its U.S. services, too. The moves are part of an effort to reduce costs and free up more engineers to work on mobile products—a top priority of CEO .

Yahoo was among the first U.S. Internet companies to establish operations in China. But its presence in China turned into a public relations nightmare eight years ago when began to assail Yahoo for cooperating with the 's demands for personal emails from two journalists who were later convicted and imprisoned.

Although Yahoo insisted it was merely obeying Chinese law, the company was internationally skewered. In 2007, it settled a lawsuit filed on behalf of the two journalists, Shi Tao and Wang Xiaoning, and a family member.

Explore further: Out-of-patience investors sell off Amazon

4.7 /5 (3 votes)
add to favorites email to friend print save as pdf

Related Stories

Yahoo China to end email service

Apr 19, 2013

Yahoo's China arm will shut down its email service later this year, state media reported Friday, in a move illustrating the brand's diminishing profile in the country.

China fund may help Alibaba in Yahoo! bid: report

May 25, 2012

China Investment Corporation is in advanced talks to add up to $2 billion to the Alibaba Internet Group's efforts to buy back a stake from struggling Internet pioneer Yahoo!, the New York Times reported.

China grants Alibaba payment system license

May 26, 2011

(AP) -- An online payment system founded by Chinese e-commerce giant Alibaba Group was granted a government license, the company said Thursday, following an ownership change that rattled investors in partner Yahoo Inc.

Yahoo to sell half of its Alibaba stake for $7.1B (Update)

May 21, 2012

(AP) -- Struggling Internet company Yahoo Inc. has secured a lifeline after agreeing to sell half of its prized stake in Chinese e-commerce group Alibaba for about $7.1 billion, with most of the cash going to shareholders.

Recommended for you

Out-of-patience investors sell off Amazon

Oct 24, 2014

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0