Telecom has sold its 49% share in Yahoo!Xtra to Yahoo!7, who will now own 100% of Yahoo!Xtra.
Prior to the agreement , Telecom New Zealand owned 49% and Yahoo!7 owned 51%.
The commercial partnership for Yahoo!7 to support Telecom’s broadband customer base will continue.
The Yahoo!Xtra business will rebrand to Yahoo! New Zealand with all Yahoo!Xtra staff remaining employed by Yahoo! New Zealand.
Alan Gourdie, Telecom Retail CEO, said in the coming months customers will notice changes to the branding on the site, however Yahoo!7 and Telecom remain firm partners.
"The Yahoo!Xtra business has been extremely successful over the past few years. The internet is a fast moving industry and it makes sense for both businesses to evolve the ongoing relationship,” said Gourdie.
Greg Brown, Chief Financial Officer, Yahoo!7, added, "Yahoo!Xtra is already New Zealand’s favourite homepage and is a profitable company. Telecom customers and all New Zealanders will be able to continue to access the great local and international content along with the Yahoo! services that they have come to love.”
"This sale is not material for Telecom NZ and does not result in any change to guidance,” the company added.
