16 Apr 2011

Telecom sells stake in online venture

11:14 am on 16 April 2011

Telecom has sold its 49% stake in online venture Yahoo! Xtra for an undisclosed amount.

It has sold the stake to its joint venture partner Yahoo!7 - itself a joint venture between Australia's Seven Media and internet giant Yahoo.

Independent telecommunications analyst Paul Budde says the sale comes as no surprise as Telecom has been moving away from the content business, as evidenced by the sale of Yellow Pages.

Mr Budde says that when Telecom is split it won't have the leverage of a monopoly to force that sort of product onto people's agendas.

Telecom has said it will split its wholesale arm Chorus from its retail division in order to take part in the Government's ultra-fast broadband initiative.

Telecom is not changing its profit guidance as a result of the sale of its Yahoo! Xtra stake.