Transcript

The Brutal Decline of Yahoo!

The BRUTAL DECLINE of YAHOO! An Infographic Tale January, 1994, Two Stanford students create "David and Jerry's Guide to the World Wide Web." Within three years they have the largest audience on the the net. Those were the good times. FEELA AN April, 1999: Yahoo! buys Broadcast.com for $5.7 billion in stock. That's 100 times the annual revenue for a company that was never profitable. JERICHS The service was split into Yahoo! Launchcast, now Yahoo! Music, which outsourced its con- tent to CBS Radio in February 2009, and Yahoo! Platinum which was launched in March in 2003 and discontinued seven months later. broadcast.com January 4, 2000: Yahoo!'s stock price reaches $125 per share. A year later, after the dot com crash, it was at $14 and dipped below $4 before the year was out. It currently trades around $16 per share. June, 2000: Yahoo! announces they are switching from Inktomi powered search results to using Google. 1999 2000 2001 ogle August 2002: Yahoo! attempts to buy Google for roughly $3 billion. Google isn't interested. June, 2002: Yahoo! closes their UK auctions site. Started in 1998 to compete with eBay, it now directs users to eBay itself. EST December, 2002 and July, 2003: Yahoo! buys search assets Inktomi and then Overture, who owns AltaVista and AlltheWeb. ONE HILLION DOLLARS February, 2004: Yahoo! drops Google-powered search powered results and uses it's own search technology. Yahoo! sheds search market share year-after-year as it tries to do and be everything to everyone. CEO Terry Semel, is compensated half a billion dollars for the mismanagement. -AdWords Yahoo!'s search monetization under performs because it requires advertisers to buy a variety of traffic sources. Google AdWords' laser focus and efficiency is a hit, earning $23 billion in revenue for 2009. YAHOO! DE Yoloot FIREBALL NER.DE OOelinet February, 2007: Yahoo! launches its new ad system, Panama, which uses a relevancy formula similar to AdWords, but still doesn't address the above syndication issue. kelkoo msn ydboyoo LYCOS GMX ARCOR May, 2007: Google launches "universal" search. man ha oligare?? Over the next few years Google enters new verticals with YouTube and localized search with Maps, which push down Yahoo!'s own sites. 144,942,585 June, 2007: Semel resigns as CEO. Yahoo! co-founder, Jerry Yang takes over. September, 2007: Yahoo! purchases ad network, BlueLithium for $300 million. While the network still exists, the domain doesn't resolve and was never redirected. RE January, 2008: Microsoft offers s44.6 billion for Yahoo!, setting the value at $31 a share. Yahoo! spurns the offer. rossit June, 2008: Yahoo! and Google sign an ad deal, but Google backs out after being threatened by regulators. kelk November 2008: Yahoo! sells Kelkoo, a European shopping search site, for €100 million. It had purchased it four years earlier for €475 million. YAHOO January, 2009: Carol Bartz becomes the new CEO. May, 2009: Microsoft launches Bing search. July, 2009: Microsoft and Yahoo! sign a search deal where Microsoft will power both Yahoo!'s search ads and algorithmic results. bi Since dropping Google-powered results six years ago, Yahoo!'s market share dropped from 17% to 10% while Google gained another 25% to dominate 65% of the search market. NETSCAPE UN Now! GeoCities Under Strictionn 64931 October, 2009: Yahoo! shuts down GeoCities, which it purchased ten years prior for $3.57 billion in stock. December, 2009: After four failed attempts into social networking, Yahoo! outsources social integration to Facebook. YAHOO!360 facebook- Oebo mash December, 2009: Yahoo! stops supporting its France, Germany, Italy, and Spain web directories. facebook Zimbra Vmware January, 2010: Yahoo! sold email company Zimbra to VMware. Most reports put the purchase price fa below the $350 million Yahoo! paid in 2007. PriceGrabber.com January, 2010: Yahoo! Shopping outsources technology to Pricegrabber. February, 201O: Yahoo! sells HotJobs to Monster.com for $225 million which it had purchases eight years prior for $436 million. CAHOO! hotiobs March, 2010: The Yahoo! Publisher Network announces there are closing and that publishers should shift to using ads from Chitika. April, 2010: Yahoo! Health outsources technology to Healthline. May, 2010: As Yahoo!'s core products sag in search rankings, it makes a bid for long tail results by buying the content milI, Associated Content. ASSOCIATED That same month, Google updates their algorithm to lower the rankings of some content mills. single company 1seeks content basad relationship. turn offe: overhead and comsitment. May, 2010: Yahoo! outsources its Yahoo! Personals service to Match.com June, 2010: Yahoo! announced a $3 billion stock buyback program, showing that they didn't know what to invest in to grow after they closed, sold, or outsourced virtually everything. िम्ठ NASDAD July, 2010: Proving that the outsourcing is not done yet, Yahoo! Real Estate outsources its listings to Zillow. Zillow.com August, 2010: Paul Graham writes "What Happened to Yahoo", an article highlighting that as far back as 1998 Yahoo! was doomed to fail due to benefiting from a de facto Ponzi scheme that would soon deflate and for not appreciating the value of good programmers. September, 2010: Google rolls out Google Instant which increased AdWords ad clicks by 5%. It was built with technology similar to Yahoo Instant Search which Yahoo! built and scrapped in 2005. October, 2010: Yahoo!'s quarterly numbers miss the mark, in spite of the sale of HotJobs. The week prior, Google announces a 23% year on year increase in revenue. EUNCEEDS SAVARAN brought to you by ORG and BY JESS.NET ONE HILLION DOLLARS OLLARS

The Brutal Decline of Yahoo!

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Some time in mid 2010, Yahoo! dove into a "death spiral", its stock price sinking toward $10 and its employees facing massive layoffs. Yahoo! was supposed to be what Google eventually became: the cen...

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