Yahoo, MCI Disconnect Online Relationship
Newsbytes - September 14, 1998 17:40
%ONLINE %MSP MCIC YHOO WCOM AOL V%NEWSBYTES P%NBYT
SANTA CLARA, CALIFORNIA, U.S.A., 1998 SEP 14 (NB) -- By Bob Woods, Newsbytes. As a result of MCI Communications' [NASDAQ:MCIC] deal to sell its Internet business to Cable & Wireless PLC, the long distance giant will end its online service pact with Yahoo Inc. [NASDAQ:YHOO], officials from both companies confirmed to Newsbytes.
An MCI spokesperson told Newsbytes that the decision to end the relationship was a "mutual" one, and that all current subscribers to the Yahoo service through MCI will be transferred to Cable & Wireless when MCI's Internet sale is completed to C&W, which will happen at the same time MCI's merger with WorldCom Inc. [NASDAQ:WCOM] is complete.
MCI agreed earlier this year to sell its Net unit to C&W for $1.75 billion in order to soothe regulators' concerns in regards to WorldCom's acquisition of MCI (Newsbytes, Jul. 15, 1998). The purchase will allow Cable & Wireless to expand its Internet Protocol (IP) network, which currently covers Europe and the Australasian region, to include North America.
Jeff Mallett, Yahoo chief operating officer (COO), told Newsbytes that while current Yahoo Online customers would be "seamlessly" switched to C&W's system, plans have not yet been determined about new Yahoo Online customers. "A provider or providers for Yahoo Online (after the C&W buy takes effect) have not yet been announced."
Mallett said Yahoo Online was never designed to be a specific co-venture between the portal concern and any one Internet service provider.
Mallet would not reveal how many people subscribe to the service.
When the service was first announced last January, Yahoo officials said they were putting America Online [NYSE:AOL] in their sites (Newsbytes, Jan. 12, 1998). At the time, they said that Yahoo Online would not only contain Yahoo products and MCI access, but would have a unique front end, a-la AOL, and other online services.
Some of the features from Yahoo's current World Wide Web offerings that will be brought over to the new service include news and sports, stock quotes, travel, entertainment, and weather. Yahoo's famous search engine and directory will also be included, officials said, along with personalized services like financial portfolios and the "My Yahoo" offering. Other services include chat, e-mail, message boards, classified ads, and shopping.
Reported By Newsbytes News Network: newsbytes.com .
16:27 CST
(19980914/Press Contacts: Kelly Seacrist, MCI, 703-415-6124; Diane Hunt, Yahoo, 408-731-3441; Nicki Dugan, NRW PR, 650-615-7900, or Brian O'Neal, The Wasserman Group, 213-651-0253, both for Yahoo /WIRES ONLINE, TELECOM, BUSINESS/YAHOO/PHOTO)
|
