Things have been going pretty well for Yahoo!Xtra as of late. Just last month the joint venture between Yahoo!7 and Telecom New Zealand announced a net profit of $1.88m for 2010, an increase of 37 percent on the 2009 results. But Telecom has decided to part with its 49 percent share of Yahoo!Xtra, announcing it has sold it to Yahoo!7. That means Yahoo!7, a 50/50 joint venture between Australia’s Seven Media and US company Yahoo, will now own 100 percent of Yahoo!Xtra.
The change in share ownership also means Yahoo!Xtra will be rebranded to Yahoo! New Zealand. Yahoo! New Zealand will continue to deliver the services like Yahoo! Mail, Flickr and My Yahoo!
Telecom isn’t revealing too much detail about the deal, but says all current Yahoo!Xtra staff will remain employed by Yahoo! New Zealand
“The Yahoo!Xtra business has been extremely successful over the past few years,” says Telecom Retail chief executive Alan Gourdie. “The internet is a fast moving industry and it makes sense for both businesses to evolve the ongoing relationship.”
Telecom says the sale is not material won’t change the company’s guidance.