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Yahoo was once the MOST used web browser

The result?

In 1998 it had 95 million page views per day

But why NO one is using Yahoo now?

Here are 7 reasons for Yahoo’s downfall 👇👇
- The Story

Jerry Yang and David Filo founded Yahoo in January 1994

Both were Stanford graduates

At first, they developed a website named “Jerry and David’s Guide to the World Wide Web”

It was simply a directory of other websites, in a hierarchy as a searchable index
By April 1994, Jerry and David’s Guide to the World Wide Web was renamed “Yahoo!“

The word “YAHOO” is an acronym for “Yet Another Hierarchically Organized Oracle“.
Yahoo became enormous

It had rapid growth throughout the ’90s

It was poised to become a giant and a high-profile company
Yahoo provided a search engine and a directory for other websites in a time when people could only log into a website if they knew the website address.

Else there was no way to search a website.
They started making money from the advertising banners

Yahoo went public in April 1996 and its stock price rose by 600% within two years

At one time Yahoo was receiving 95 million page views per day.
Yahoo came up with a series of funny advertisements to popularize its search engine.

www.youtube.com/watch?v=WXgaUod1rCs&t=6s
Yahoo’s stock became investor’s darling during the dot.com bubble and once closed at an all-time high of $118.75 in 2000

Just after the dot.com bubble crash the stuck plunged to its all-time lowest (literally) at $8.11.
Despite the tremendous performance of Yahoo at its early stages, the company started bleeding in the late 2000s due to multiple factors.

Here are the top 7 reasons which resulted in Yahoo’s downfall:
1. Yahoo refused to buy Google for 1 million dollars:

In 1998 Larry Page and Sergei Brin offered to sell Google algorithm to Yahoo for $1 million

The algorithm was supposed to help the Yahoo search engine perform faster

Plus enhance the experience of web search.
Yahoo turned down the offer because it wanted its users to spend more time on Yahoo’s own platform

And the other Yahoo content so that it can make more money from the advertising banners on the website.
Again, in 2002 Yahoo rejected an offer to buy Google for $5 billion when the CEO Terry Semel refused the deal after months of negotiation

Yahoo offered to buy Google at $3 billion but Google was keen on getting $5 billion

So the deal could never happen. (Thank God!!)
2. Failing to buy Facebook:

Yahoo initially offered $1 billion to Facebook

Facebook made its mind in 10 minutes to decline the offer

Some stories say that if the offer was submitted at $1.1 billion, the board of directors would’ve put pressure to sell

www.youtube.com/watch?v=mH11ImPJeDc&t=4s
3. Unsuccessful acquisitions

Yahoo acquired two companies in 1999

That are now ranked by Forbes as some of the worst internet acquisitions of all-time
The first was a $4.58 billion deal for Geocities, a site that enabled users to build their own personal websites

Geocities was a pioneer in this regard, it eventually was shut down in 2009

After failing to deliver any value to Yahoo shareholders
The second was the famous $5.7 billion deal for Broadcast.com, an online television site that was founded by Mark Cuban

Perhaps the idea was way ahead of its time and internet connections were too slow in 1999 to run this type of video content off the web
4. Yahoo also bought Tumblr for $1.1 billion in 2013

Many Tumblr users were unhappy with this acquisition

And started an online petition which got 170,000 signatures

Yahoo had to write down more than half of Tumblr by 2016 and ultimately sold it to Verizon
5. Hiring wrong CEOs:

Yahoo has repeatedly hired the wrong CEOs

None of the CEOs at Yahoo including Marissa Mayer had a “strategic vision” that could match what Eric Schmidt at Google brought

Some even blame Marissa Mayer entirely for the wrong decisions.
6. Lack of clear vision

Yahoo was all over the place

During the research, people were asked to identify Yahoo with what first comes to their mind

Some said Mail, Media & some said search

Clearly, Yahoo failed to create a niche for itself that its competitors successfully did
7. Declining Microsoft’s acquisition:

In 2008, Microsoft had shown its interest to buy Yahoo for $44.6 billion, Yahoo declined

Since then, the company market value has never reached such numbers

In 2016 Verizon bought Yahoo in a deal worth $4.8 billion

www.youtube.com/watch?v=mskP3qbmhR4&t=1s
That's all guys

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It's a story where management could not make the right moves at the right time. They had opportunities, but could not close the deal. Great thread, Gaurav