GeoCities employees laid off in Yahoo! buyout

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Yahoo! reportedly laid off up to 200 GeoCities employees May 28 when the Internet portal completed its acquisition of the onlinecommunity. Yahoo! did not return calls by press time. In a newsrelease, Yahoo! said 100 GeoCities employees would be employed at Yahoo!'s Santa Clara, Calif., facility and at regional offices around the country. Yahoo! also said it would close GeoCities' headquarters in Marina del Rey.

Yahoo! expects to take a onetime charge of about $68 million inthe second fiscal quarter to account for buyout and relocationexpenses. When the deal was announced in February, it wasdescribed as a $4.6 billion stock swap. Many GeoCities employees have gotten rich from the Yahoo! buyout through valuable stock options. One GeoCities executive, who turned down offers to work at Yahoo!, bragged about the prospects of early retirement.

Copyright June 1999, Crain Communications Inc.

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