Yahoo Shuts Third Video Unit, Says Video Still Top Priority
June 30 2009 - 1:44PM
Dow Jones News
Yahoo Inc. (YHOO) said it is winding down online video service
Maven Networks - acquired last year for $160 million - as part of
the company's ongoing effort to shed non-core properties.
The move to close Maven comes less than one month after Yahoo
Chief Executive Carol Bartz said video was an exciting area for the
company and that she was interested in acquiring more video
technology.
Yahoo said in a statement late Monday night that video
initiatives remain a top priority for the Sunnyvale, Calif.-based
Web giant, but that it was "increasing investment in some areas
while scaling back in others."
Maven was used to manage, distribute and monetize premium online
video content for more than 30 major media companies, including CBS
Corp.'s (CBS) CBS Sports, Gannett Co. Inc. (GCI) and Pearson PLC's
(PSO) Financial Times. Yahoo has said it will wind down those
contracts, but will continue to use Maven technology it inherited
as the company focuses on improving core video products.
Yahoo said it was not cutting Maven employees, many of whom
oversee the company's various video initiatives.
Maven is the third video property Yahoo has closed in the past
eight months. It previously eliminated live video streaming service
Y!Live and online video editing tool Jumpcut. In total, the company
has closed or announced it will close nearly 20 services, including
social network site Yahoo 360 and web hosting service
GeoCities.
Shares of Yahoo recently fell 2.6% to $15.48.
- By Scott Morrison; Dow Jones Newswires; 415-765-6118;
scott.morrison@dowjones.com