Yahoo

Yahoo: A Web Giant’s Rise and Fall

Imagine a time when Yahoo was synonymous with the internet itself—back in the early 1990s, before Google became the dominant search engine we know today.

The Birth of an Internet Giant

How did it all begin? In January 1994, Jerry Yang and David Filo started Yahoo as a simple human-edited web directory. Could they have imagined that their creation would become one of the pioneers of the early internet era?

The Early Days

Yahoo’s journey was nothing short of remarkable. From its humble beginnings, it grew into a public company via an initial public offering in 1996. The company made many high-profile acquisitions and offered free e-mail services from 1997 onwards. By the turn of the millennium, Yahoo had become a household name, synonymous with online browsing.

The Search Engine Revolution

But what truly set Yahoo apart was its search engine function, Yahoo Search. It became the first popular online directory and search engine on the World Wide Web, making it a go-to destination for internet users everywhere.

Rapid Growth and Acquisitions

The 1990s saw rapid growth for Yahoo as it expanded its services and offerings. It acquired Geocities in 1996 for $3.6 billion, making it the largest web hosting service at the time. In 1998, Yahoo replaced AltaVista with Inktomi to become a crawler-based search engine. By 2000, its stock price had risen to an impressive high of $118.75 per share before plummeting to just $8.11 in 2001.

Struggles and Turnarounds

However, the early 2000s brought challenges for Yahoo as it faced competition from Google. In response, Yahoo offered unlimited email storage in 2007 to compete with Gmail. Microsoft even bid for Yahoo in 2008 but was ultimately rebuffed.

Leadership Changes

Carol Bartz was replaced as CEO by Scott Thompson in 2009, who lasted only a month before being fired. Marissa Mayer took over the reins in 2012 and made significant moves like acquiring Tumblr for $1 billion.

Office Expansion

In 2013, Yahoo opened an office in San Francisco, signaling its continued growth and expansion efforts. The company acquired several tech companies over the years, including Rockmelt, BrightRoll, Cooliris, Commonstock, and Artifact.

Decline and Sale

The decline of Yahoo became evident by 2015 when Mayer faced criticism for performance issues. Layoffs in February 2016 followed, leading to the Verizon acquisition in July 2016 for $4.83 billion.

Data Breaches and Controversies

Yahoo disclosed several major data breaches in 2016, affecting at least 1 billion accounts and another 500 million user accounts. The company faced criticism for censoring emails affiliated with Occupy Wall Street protests.

Partnerships and Sponsorships

In recent years, Yahoo has partnered with various organizations like FIFA, WWE, NBC Sports Group, Condé Nast, and the National Basketball Association. It also launched a sportsbook in 2019 and acquired HuffPost from BuzzFeed in 2020.

Current Status

As of 2023, Yahoo announced a 20% workforce cut, impacting around 1,000 staff members out of its 8,600 workers. The company has faced various criticisms and controversies over the years, including data breaches, censorship of private emails, and partnerships with organizations such as FIFA, WWE, and NBC Sports Group.

Yahoo’s journey from a simple web directory to an internet giant and back again is a testament to the ever-changing landscape of technology. As we look towards the future, one can only wonder what new chapters this iconic company will write in the annals of digital history.