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4 Reasons for the Yahoo’s decline – What will you learn from its story?

4 reasons yahoo decline

The internet pioneer – Yahoo peaked in 2000 with a market value of around $125 billion. And, today Yahoo announced the deal of its hub internet assets to Verizon for just $4.8 billion. Hard to believe but true.

Yahoo did several mistakes in past that became a reason for the downfall of this early-internet darling:

Losing out on Google

In 2002, Yahoo got a chance to acquire Google for $1 billion. But, when Terry Semel (Yahoo’s then-chief executive) went back to the Google, Sergey Brin and Larry Page upped the price to $3 billion, so deal got canceled.

Missing an opportunity with Flickr

Time was, when we used to operate Flickr – a photo sharing site instead of Facebook, Instagram and Google Photo. At that time, Flickr wanted to turn the website into a social network. But, Yahoo refused this opportunity and spoiled the site into obscurity.

Not buying Facebook

In 2006, Yahoo also proposed Facebook with an acquiring offer of $1 billion. Mark Zuckerberg rejected the offer down, but some reports reveal that Facebook’s board demanded $1.1 billion, and Terry Semel refused to raise the price.

Rejecting Microsoft

In 2008, the co-founder of Yahoo – Jerry Yang refused Microsoft’s $44.6 billion offer. Then, Microsoft’s chief executive tried hard to convince Yahoo to sell, but Yahoo believed the offer was too low. In 2009, Yahoo decided to create its own search engine and signed a deal to use Bing.

On 25th July, 2016, Yahoo announced that it is selling its core business to Verizon. However, you can learn several lessons from the journey of Yahoo.


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