Posted in Business, China, Media on September 18, 2009|
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From Yahoo’s perspective
The Deal:
Under the terms of the agreement, Yahoo! will contribute its Yahoo! China business to Alibaba.com and the two companies will work together in an exclusive partnership to grow the Yahoo! brand in China. (Yahoo press release in 2005)
CEO Bartz:
… she disliked how the Yahoo brand was being treated in China, according to a source familiar with the situation. But Bartz said at a July conference that it wouldn’t “make any sense at all” to try to buy the brand back or to “get rid” of Yahoo’s stake in Alibaba.
“We have a bigger play just riding the fortune of Alibaba than we ever could being Yahoo China,” she said.
From Alibaba’s perspective
The Deal:
Alibaba Group acquired China Yahoo! (www.yahoo.com.cn) in October 2005 as part of its strategic partnership with Yahoo! Inc. (Alibaba Group’s website)
Ma’s perspective:
“We will digest Yahoo China in our own way”
Ma said the way Alibaba integrates Yahoo China will be a “case study,” but did not say how the portal may continue to change.
Articles: Alibaba Mulls Yahoo China Future After Bing Deal; Alibaba Removes Classifieds Business From Yahoo China
Here’s the reality. Yahoo relinguished control over it’s Yahoo China brand back in 2005. While it is true that Alibaba has since neglected Yahoo China and focused on Taoboa, Alipay and others, in the end, they are doing what makes the most sense for Alibaba Group as an aggregate.
Since Yahoo owns 40% of Alibaba Group, everyone’s interest should be aligned. Well, economically at least. Strategically, the day Yahoo decided to give up control is the day Yahoo threw in the towels for China. Personally, I think that is one of the few good decisions Yahoo has made in the past few years.
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