Yahoo Inc. (NASDAQ: YHOO) has shut down its email services in China with effect from august 18th, 2014, transferring all its Chinese email subscribers to Alimail, the email service of Alibaba, the Chinese internet company in which Yahoo holds a 24% stake. The closure of yahoo email services follows the closure of Yahoo’s Chinese music services in China. However If you think Yahoo is walking out on China, you possibly can’t be any further from the truth which is evident from Yahoo’s acquisition of Ztelic, a Chinese social network data start-up.
Yahoo, among its various acquisitions over the past one year, acquired Ztelic. Now if you consider the amount of data we generate through social networks on a daily basis, I think this is another of the good decisions under Marissa Mayer. The acquisition of Ztelic could help Yahoo in developing its new personalization strategy by helping target users with relevant content which they would like. Though the value of the deal has not been made public, this acquisition gives Yahoo access to data on needs and habits of Chinese users which will play a huge part in Yahoo successfully establishing itself in a market with over 500 million internet users.
To see Yahoo’s latest stock price movement, click here (NASDAQ: YHOO)
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