The Billion Dollar Mistake by Yahoo

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Yahoo is an American web services provider headquartered in Sunnyvale, California founded by Jerry Yang and David Filo in January 1994 and was incorporated on March 2, 1995. Yahoo was one of the pioneers of the early Internet era in the 1990s. It provides or provided a The web portal, search engine Yahoo! Search, and related services, including Yahoo! Directory, Yahoo! Mail, and its social media website. It was one of the most popular sites in the United States. Once one of the largest Internet companies, Yahoo slowly declined to start in the late 2000s and despite its decline from prominence, Yahoo domain websites are still among the most popular. Everyone does mistakes so did yahoo but few grave ones which killed it


What Killed Yahoo ??


1] Refusing to buy Google

In 1998, Larry Page and Sergei Brin approached Yahoo when it was at the peak to buy Google for only $1M as both of them wanted to concentrate on their higher education but then Yahoo turned down the offer as it wanted its users to spend more time on its platform. But now google's worth is near $500B



2] Refused to acquire Google for the 2nd time

However, as time progressed the online world soon began to realize the importance of third-party online advertising revenue, Yahoo realized their mistake and tried to buy Google for $3B for which Google asked for $5B and eventually Yahoo said a big No


3]Yahoo spurned an offer of $45B

This was the final nail in the coffin. In 2008, Microsoft bided $45B to buy Yahoo and had also shown its interest to buy 62% of premium shares at the closing price of that time but Yahoo declined



Fast forward six years and Yahoo sold its core business for a mere $4.8 billion to an American telecommunication conglomerate, Verizon.Yahoo didn't take any opportunity to buy or sell to any major companies because of which it cost them more than $800B and ended up getting sold to mere $4.8B



"Always make sure you are making the right decisions to grab the right opportunities"

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