Yahoo Inc. said Thursday that it would shut down its GeoCities free Web-hosting service after paying about $3 billion for the unit in 1999.
GeoCities isn't accepting new accounts and will close later this year, Yahoo said. GeoCities, Yahoo's second-biggest acquisition behind Broadcast.com Inc., lets users design personal websites to show off photos, promote local clubs or publicize business services.
Chief Executive Carol Bartz is trimming costs as Yahoo copes with a slowing online-advertising market. The company said this week it will cut about 700 jobs, or 5% of the total, after eliminating about 1,600 in the fourth quarter.
Yahoo pointed GeoCities users to its paid Web-hosting service. The company will give users more details on saving GeoCities' data later this year.