Yahoo Shuts Third Video Unit, Says Video Still Top Priority

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; [e-mail]