Telecom NZ (ASX:TEL) has sold out of its joint venture with Yahoo!7.
New Zealand's incumbent telecom operator has sold its entire 49% stake in website Yahoo!Xtra to Yahoo!7.
Yahoo!7, itself a 50-50 joint venture between Yahoo and Seven Group Holdings (ASX:SVW), plans to rename the search and news portal page to Yahoo New Zealand.
Yahoo!7 CEO Greg Brown said all staff of the former joint venture will remain employed after the rebranding, and that the agreement to support Telecom NZ's broadband customers will remain in place.
This deal covers the provision of services including Yahoo Mail, Flickr and My Yahoo.
Brown said that Yahoo!Xtra is a profitable company. The company reported a 37% increase in 2010 profit to NZ$1.88 million ($1.49 million).
Terms of the transaction were not disclosed, but Telecom NZ said the sale is “not material” and won't result in a change of guidance.
Telecom entered its joint venture agreement with Yahoo in 2007.
TEL shares rose 1.7% to $1.495 during Friday's trading, while SVW shares fell 2.19% to $9.400.