Yahoo struggles a lot to survive in recent years to moves parallel in modern era.
What goes wrong that may world’s biggest internet giant, 22-year-old company lead to downfall?
Let’s go into flash back and start with 19 century:
Growth (1994 – 1999) Company was started in a university by two students namely David Filo and Jerry Yang both were engineering graduates and company grew rapidly for its unique concept of web directories at that time company venture capital, raising approximately $3 million. On April 12, 1996, Yahoo! a public offering, raising $33.8 million by selling 2.6 million shares at the opening bid of $13 each.
Era (2000 – 2009) In late 19’s and early 20’s Yahoo has double has figures both in popularity also in economic market numbers, Yahoo stock share close at all-time high U.S$ 118.75 a share in a stock market. In 2002 Yahoo form curtain partnerships with different telecommunication and internet provider (SBC Communication, BT openworld and Verizon) to compete AOL.
In late 2002 yahoo was on its peak its search services acquires among all other search engines. During this period Yahoo takeover many other companies namely Inktomi, Konfabulator, Overture Service Inc and subsidiaries AltaVista and AlltheWeb. Terry Semel (Yahoo CEO) puts in a $3 billion bid to acquire Google. The rising search player turned down the offer.
In 2004 Google a competitor of world biggest internet giant Yahoo released his product pronounce Gmail, in response Yahoo upgrade storage of all Yahoo mail accounts from 4MB to 1GB and all Yahoo Mail Plus account to 2GB. Google meanwhile launch Google Talk, voice over IP and instant messaging service on 2005 Yahoo invests $1 billion in Chinese e-commerce player Alibaba, a 40 percent stake also Yahoo and Microsoft announced Yahoo Messenger and MSN Messenger. In late 2005 Yahoo further acquire companies namely known as Flickr,blo.gs and del.icio.us. Yahoo turns down a $44.6 billion acquisition deal from Microsoft Company aimed at building a competitor to Google and takeover webjay in 2009.
Era (2010 – 2016) When Carol Bartz appointed as new chief executive officer of Yahoo company and a member of boards of directors. He replaced co-founder Jerry Yang. And Downfall starts rising.
All thing were positive than what were the elements that take this biggest giant company in this catastrophic end?
Factor#1: Loss opportunity to take over onto its competitor, In 2002 Yahoo had chance to acquired Google for U.S $1 Billion
Factor#2: In 2005 Yahoo acquires namely company Flickr that was much famous for photo sharing the management plan to change that site from photo sharing to social media sharing website after that we got Google photo, Facebook and Instagram for photo sharing.
Factor#3: After homicide coincidental from flickr Yahoo another opportunity to make it correct not to buy Facebook from mark Zuckerberg for U.S$ 1.1 Billion.
Factor#4: After making so many mistakes from the member of managing committee, Microsoft still bid to Yahoo of U.S$ 44.6 Billion to sell.
A series of bad chief executive and lacking of clear mission layoff Yahoo to TRAGIC END.