Yahoo has announced its plans to shut down its news websites in India due to the latest foreign direct investment (FDI) regulations that bar foreign funding of more than 26% in digital news media outlets.
News sites including Yahoo Cricket, Yahoo Finance, News, Entertainment and others in the next few days will cease to exist. Verizon will, however, continue to operate Yahoo Mail and Yahoo Search, and its adtech business in India.
Yahoo to operate only Yahoo Mail, Yahoo Search and Ad Tech Business in India
“There have been changes in the rules limiting foreign ownership of media companies that operate in the news and current affairs space, including a digital media entity that streams, uploads digital news and current affairs content in India and news aggregators,” April Boyd, head of Global Public Policy, Verizon Media, said.
Having evaluated the operational and economic challenges in restructuring the media business within the specified timeframe, and the absence of requisite government approvals to operate our news and current affairs content business in India, we have made the decision to shut down Yahoo’s news and current affairs content operations in India, she added.
According to new FDI regulations, which will come into effect in October, digital media companies in India can accept up to 26 percent investment in form of foreign investment subject to approval from the central government.