Yahoo China has been shuttered with a good-bye message stating that the web portal’s closure is a result of the agreement between Alibaba Group and Yahoo. The page automatically redirects to http://now.taobao.com/ – a news website run by Alibaba.
According to the 2012 agreement along with the closure of web portal, all employees of Yahoo will be moved to new position within Alibaba. China’s ecommerce giant had decided to takedown all of its Yahoo-branded services and the latest closure is more or less the final step towards this.
Earlier this year, the group closed Yahoo’s Chinese music service and about two weeks back Yahoo’s mail service in China was also shuttered. Users were asked to transfer their mail accounts to Alimail, but email redirects will continue till end of next year.
According to the agreement made in 2012 between Yahoo and Alibaba, Yahoo agreed to sell a major portion of its 20 percent stake in Alibaba back to the company and that the decision will result in granting a transitional license to Alibaba to operate Yahoo China for up to four years under the Yahoo brand. The Yahoo China team will be relocated to public welfare and charity operations by Alibaba.
Over the past eight years, Yahoo China failed to perform as per expectations under Alibaba, but Yahoo’s investment worth $1 Billion made in 2005 is surely paying off with Alibaba leading to a valuation of around $100 Billion.