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September 2, 2013

Yahoo scraps China news and community services

By Duncan Macrae

Yahoo has shut down its news and community services in China, after it ceased its email service in the country last month.

Yahoo China’s home page now redirects visitors to a website by Alibaba, which manages Yahoo’s Chinese operation.

A redirect message from the firm explains that it is "adjusting its operations strategy".

It also implies that its staff will be working on Alibaba content instead and thanks users for their support.

Yahoo has a significant stake in B2B online retailer Alibaba, which has been licensed to run its Chinese services.

Some analysts suggest that Alibaba’s own services have benefited from its relationship with Yahoo.

Analyst Li Zhi, from Analysys International, commented: "China Yahoo has been under Alibaba for many years. Its most valuable properties have been dismembered and used. Alibaba already has no need for a China Yahoo that’s been squeezed dry."

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