Yahoo has hanged a huge lock on email service in China. The site is now flashing a note on its log-in page requesting its users to shift their accounts to Alibaba’s mailing services. Way back in April, Yahoo had announced about the email closure. It was this weekend that users bid a final adieu to Yahoo email service in China.Since 2005, Yahoo seems to have been packing up from China. It has been turning-in its website, email services and other services to Alibaba, which is a partner to Yahoo and also one of the biggest internet companies in China. News confirm that Yahoo paid $1 billion for 40% stake in Alibaba. Yahoo made almost $7.6 billion after selling half of the stake to Alibaba last year. The remaining half worth more than what it gained. Estimates say its almost $14 billion. In next two years, Alibaba will go public, giving Yahoo golden opportunity to sell off its holdings.
Yahoo is putting its main focus on mobile products. For that, it needs to free its engineers. Yahoo took this step to reduce costs. It is not only shutting down in China, but also in US- Some of the US services are also being locked by Yahoo. It can be well deducted that its email service did not pull traffic in China. Like Yahoo music service, email service has pulled down its shutters. Alibaba is now playing its master strokes by providing alternatives to those affected by pushing its Aliyun email service where users can forward emails from Yahoo China Email accounts until this year end.
Yahoo happens to be first among US companies that established its operations in China. Unfortunately, it got skewered internationally eight years back when its presence became a nightmare in China. Yahoo insisted on obeying Chinese Law, but that did no good to improve its market in China.
The Sunnyvale-based Company recently acquired Ztelic, a Beijing based startup. Around 8 developers and engineers got associated with Yahoo’s Research and Development team. Thus, it can be very well said that Yahoo is not depending on its investment in Alibaba only. It has its other plans ready!