The Canadian Press - ONLINE EDITION

Yahoo's email service in China will close this summer as part of arrangement with Alibaba

  • Print

SAN FRANCISCO - 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 Alibaba.

Yahoo Inc., based in Sunnyvale, Calif., 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 per cent 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 Marissa Mayer.

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 human rights activists began to assail Yahoo for co-operating with the Chinese government'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.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Premier, Mayor comment on CMHR opening

View more like this

Photo Store Gallery

  • Jia Ping Lu practices tai chi in Assiniboine Park at the duck pond Thursday morning under the eye of a Canada goose  - See Bryksa 30 Day goose challenge Day 13- May 17, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Hay bales sit under a rainbow just west of Winnipeg Saturday, September 3, 2011.(John Woods/Winnipeg Free Press)

View More Gallery Photos

Poll

Do you think the Scottish independence referendum will have an effect in Canada?

View Results

View Related Story

Ads by Google