Yahoo shuts down email service in China

Yahoo has shut down its email service in China following the announcement of the closure in April, whilst speculation that the company would exit China all together, pulling its search engine service, has proved unfounded.

Users had until the end of last week to migrate their email to an alternative service, however Alibaba, which runs Yahoo's operations in China, is offering to transfer old Yahoo emails to Alibaba's Aliyun email service until the end of the year, according to techinasia.com.

The highly profitable company, which has boosted Yahoo's profits in recent times, has been attempting to ensure all Yahoo email users switch to Aliyun.

Yahoo acquired 40 per cent of Alibaba in 2005. Last year the Asian Internet giant bought back 20 per cent of Yahoo's shares for approximately $7.1 billion (£4.54 billion).

The closure of Yahoo's email service seems to be a straightforward case of the business underperforming. The company completely pulled out of South Korea at the start of this year as part of CEO Marissa Mayer's attempt to "streamline operations and focus our resources on building a stronger global business that's set up for long-term growth and success".

Last year Yahoo also shut down a music service in China and closed a blogging platform in Vietnam.