Yahoo China which is operated by Chinese e-Commerce and Internet services behemoth has finally shut down its web portal. Yahoo China is now displaying a good-bye message to its user before redirecting their users to now.taobao.com. Taobao is a news site which is run by Alibaba groups Taobao.
Yahoo China was shutdown as an agreement made in 2012 between Alibaba group and Yahoo and also that Yahoo China’s employees will move on to new positions with Alibaba. In 2005, Yahoo has paid $1 billion for a 40% stake in Alibaba, before the company grew into the backbone of China’s rapidly expanding e-Commerce market. Alibaba closed an initial repurchase of its shares from Yahoo for $7.6 billion in September. As part of the deal with Alibaba, Yahoo agreed that Alibaba Group can operate Yahoo China’s brand for up to four years. Internet companies–including Google, eBay and Amazon–have faced in China due to confluence of factors including government censorship, failure to localize effectively and the rapid rise of Chinese companies like Baidu and Tencent.