Is Yahoo Pulling Out of China?

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Geek Smack! episode 272 Tech News:

Microsoft Nokia
– Microsoft buys the hardware division of Nokia for $7 billion and maybe Microsoft’s next CEO…
Blackout Over
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Password Software Improved
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Reddit RT.com Ban
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Google Earth
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Spotify Connect

– Streaming Spotify to wireless speakers
Price-fixing Settlement
– e-book buyers could get $3.06 a book settlement for a price fixing issue
 

Geek Smack: Yahoo! is Leaving China?

Two weeks ago I reported that Yahoo! email was closing. Overnight, Yahoo! took things one step further as they ceased news and community services, moving everyone over to Alibaba. Is this showing that Yahoo! is getting out of China?

Yahoo! decided to close their email services in China and port users over to Aliyun – also an Alibaba property. The email registration closed on Aug 19, but you have until December 2014 to switch email.

So is Yahoo! pulling out of China? Not necessarily.

Yahoo! has a 40 percent stake in Alibaba. To compete with the giant is not always the best solution. In fact, Yahoo! has been phasing out their presence in China since 2005 when the web site shut down.

By Yahoo! giving more traffic to Alibaba, they have a good chance of making a lot of money when Alibaba goes public.

Yahoo! Also has a bad name in China. If you follow my Day in Tech History podcast (Sept 7, 2005), you know that Yahoo! caused two journalists to be imprisoned because of Chinese law. This has haunted Yahoo! since.

So the end result is it looks like Yahoo! is pulling out of China, but has a lot of strong ties. As long as those being forced to leave Yahoo! mail decide to move to Alibaba.


Geek Smack! is a weekly video show and podcast that comes out every Tuesday evening. Your host: Jeffrey Powers – talks tech news, IT news and geek news for the week. Geek Smack! is ©2013 under a Creative Commons no-deriv license. Dog Days of Summer – enjoy it! If you would like more information about what is technology, recent news, Geekazine, and Jeffrey Powers, feel free to contact him. Jeffrey Powers does interviews, just ask!

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