Yahoo's China page closes following gradual phase out

Alibaba Group likely has no more use for the Yahoo brand in China, according to an analyst

After seeing its popularity decline, Yahoo's Internet portal in China has formally closed down, in a sign that e-commerce giant Alibaba Group is transitioning away from the brand.

The portal went offline on Sunday. Its closure is rooted in an agreement Yahoo made last year with Alibaba Group, which has control over the Yahoo brand in the country.

For years now, Alibaba has operated Yahoo's China business as part of $1 billion deal investment from the U.S. company made back in 2005. In exchange, Yahoo acquired a 40 percent stake in Alibaba.

But last year, Yahoo agreed to sell part of that stake back to the Chinese e-commerce company, following ongoing disagreements between the two Internet giants. The share buy-back resulted in Yahoo granting Alibaba "a transitional license" to continue operating its brand for up to four years.

Since then, Alibaba has been phasing out Yahoo products. In December, Yahoo's music service in China went down. Then earlier this year, Yahoo's China site announced the closure of its email service, which formally went offline last month.

Sunday's shutdown of Yahoo's Chinese portal is the result of a strategy adjustment, the site's team said in an Internet posting. The portal, at cn.yahoo.com, now reroutes to an Alibaba site promoting public welfare projects.

Alibaba declined to elaborate on the site's closure. Yahoo had no immediate comment.

The popularity of the Yahoo portal site has gradually waned over the years, as the influence of Chinese Internet companies has only grown. In May, the site ranked as the tenth most-visited Internet portal in the country, according to CR-Nielsen, an Internet research company.

Alibaba likely has no more use for the Yahoo brand, considering that the company is focused on e-commerce, and not media portal sites, said Li Zhi, an analyst with Beijing-based research firm Analysys International.

"China Yahoo has been under Alibaba for many years. Its most valuable properties have been dismembered and used," she said, pointing to how Alibaba had originally wanted access to Yahoo's search technologies. In 2009, however, Yahoo decided to use Microsoft Bing to power its searches.

"Alibaba already has no need for a China Yahoo that's been squeezed dry," Li added.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internete-commerceYahooAlibaba Group

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Imou: At home with security

Modern living is all about functionality and security for everybody from the very young to the very old. With Imou anybody can enjoy smart life – the solution is at their fingertips.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Ada Chan

Dynabook Portégé X30L-G

I highly recommend the Dynabook Portégé® X30L-G notebook for everyday business use, it is a benchmark setting notebook of its generation in the lightweight category.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?