Today we are going to be having a look at the rise and fall of Yahoo. its hard to believe at one stage Yahoo was worth over 100 billion dollars today they are just a show of their former self Verizon an American communications company is now buying Yahoo for 4.8 billion dollars a fraction that 100 billion dollars it was once worth it. it was a huge company but for me personally, In my mind it was never really a strong brand I never really knew where they fit in the tech space. now we are seeing what caused the downfall how did Yahoo start and where did it all go wrong.
Goodbye, Yahoo Messenger.
Yahoo.com was founded in 1994 by two Stanford graduates Jerry Yang and David Filo. Yahoo was to act as a portal to the internet. At a time when it was still just a mess of unorganized websites and information. At the time there were very few meaningful ways to quickly browse what you wanted to see. The company went public in 1996 and by 1997. They were ranked second in the terms of the internet behind AOL of course. In 1998 yahoo was approached by two young Stanford Ph.D. students their names were Larry Page and Sergey Brin. They just created a PageRank a search engine algorithm and a quick way to get relevant information on the internet. The standards student asking 1 million dollars for the algorithm. Yahoo said no as they thought that it would take the user away from their main website while decreasing traffic and ad revenue. The PageRank algorithm would eventualy become google.
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Around this time in the late 1990s, the internet was all the rage. All the tech companies were hit badly but yahoo, google, and a few others survived the storm. Yahoo didn’t escape with some immense damage through. Their stock price went from over a hundred and eighteen dollars to just four dollars and six cents. In 2002 yahoo was still the most visited site on the internet but it losses to Google in a big way in terms of search. In 2005 the company bought a 40% stake in the emerging online retail company Alibaba. In this year they would also purchase the photo-sharing site flick up. One year later the company was turned down by 22-year-old Mark Zuckerberg. Yahoo offered to buy Facebook for 1 billion dollars but Zuckerberg declined . in 2008 Microsoft offers 44 billion dollars to buy Yahoo. They laughed at it off saying that it didn’t highlight the value of the company that’s in which they did except because this was the highest offer they would ever receive. After a slow steady decline 3 years later they acquired Tumblr. All of this didn’t work. By 2016 company was suffering a 4.4 billion dollar loss and was absolutely bleeding money. At the end of 2016 Verizon buys out Yahoo for 4.8 billion dollars that’s about 1% of what Microsoft was willing to pay. In the course of its lifetime yahoo had bought a 114 companies none of them turned into a hit which could save the company. Users won’t be able to access the service after July 17.