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YAHOO PULLS OUT OF CHINA FOR GOOD

By Jordan Valinsky, CNN Business



Updated 1220 GMT (2020 HKT) November 2, 2021


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New York (CNN Business)Yahoo has shut down access to its services in China,
becoming the latest American tech company to exit the country.

It pulled the plug "in recognition of the increasingly challenging business and
legal environment," a Yahoo spokesperson said in a statement.
"Yahoo remains committed to the rights of our users and a free and open
internet. We thank our users for their support."



Access to many of Yahoo's features in China have disappeared since 2013,
including email and news. In 2015, Yahoo closed its Beijing office and
eliminated roughly 300 jobs.

Yahoo joins Microsoft's (MSFT) LinkedIn social network, which announced last
month that it would leave China because of a "significantly more challenging
operating environment and greater compliance requirements in China."
Read More
Operating in China has long posed numerous challenges for private companies, but
Chinese President Xi Jinping has orchestrated a sweeping regulatory crackdown on
the tech, education, gaming and entertainment industries in recent months that
has wiped a huge amount of market value off China's biggest firms.
The country's latest five-year plan includes promises to strengthen rules that
would clamp down on monopolistic behavior and regulate technological innovation.
Authorities also called on "law enforcement" to take action in areas of "vital
interests of people," including financial services, education and tutoring.
Yahoo was once among the biggest tech companies in the world, but its influence
drastically diminished over the past decade. Several CEOs tried turning the
company around, but they ultimately failed to regain share of the search and
advertising markets that Yahoo once dominated. It was recently bought by Apollo
Global Management from Verizon as part of a $5 billion deal.

The company was once an early investor in Chinese e-commerce giant Alibaba.
Several years later, Yahoo returned $3 billion to shareholders after selling
back about half of its massive stake in Alibaba for $7.1 billion.
-- CNN Business' Laura He contributed to this report.



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