Alibaba Group restructures its China Yahoo business and will strip out a classified listing operation and add it to its rapidly expanding retail Web site, Taobao.com.

Alibaba controls China Yahoo as part of a deal made in 2005 which gave Yahoo a 39% stake in the Alibaba Group (for which Yahoo paid US$ 1 bn).  Earlier this year Yahoo’s management expressed unhappiness with the China Yahoo results, because it is losing share in the Chinese online search market in which it has a 6% share versus 26% for Google and 62% for Baidu.  Source: The Wall Street Journal Asia

BIIA Newsletter October – 2009 Issue