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They were Electrical Engineering graduate students at Stanford University when they created a website named "David and Jerry's Guide to the World Wide Web". David and Jerry's Guide to the World Wide Web was a directory of other web sites, organized in a hierarchy, as opposed to a searchable index of pages. In April 1994, "Jerry's Guide to the World Wide Web" was renamed "Yahoo!". The yahoo.com domain was created on January 18, 1995,. Yahoo! grew rapidly throughout the 90s. Like many search engines and web directories, Yahoo! diversified into a Web portal. It also made many high-profile acquisitions. It's stock price skyrocketed during the dot-com bubble, Yahoo! stocks closed at an all-time high of $118.75 a share on 3 January 2000. However, after the dot-com bubble burst, it reached an all-time low of $8.11. In 2000, Yahoo! began using Google for search results. Over the next four years, it developed its own search technologies, which it began using in 2004. Yahoo! also revamped its mail service to compete with Google's Gmail in 2007. The company struggled through 2008, with several large layoffs. In February 2008, Microsoft Corporation made an unsolicited bid to acquire Yahoo! for US$44.6 billion. Yahoo! subsequently formally rejected the bid, claiming that it "substantially undervalues" Yahoo! and was not in the interest of its shareholders. Carol Bartz replaced cofounder Jerry Yang in January 2009
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1 Early history (1994-1996) 2 Growth (1997-1999) 3 Dot-com bubble (2000-2001) 4 Post dot-com bubble (2002-2005) 5 Yahoo! today o 5.1 Acquisition attempt by Microsoft o 5.2 Change in direction under Carol Bartz 6 References
 Early history (1994-1996)
In January 1994, Jerry Yang and David Filo were Electrical Engineering graduate students at Stanford University when they created a website named "David and Jerry's Guide to the World Wide Web". David and Jerry's Guide to the World Wide Web was a directory of other web sites, organized in a hierarchy, as opposed to a searchable index of pages.
1995. David Filo Jerry Yang The yahoo. knives (by EBSCO Industries) and human propelled watercraft (by Old Town Canoe Co. Yahoo! headquarters in Sunnyvale  Growth (1997-1999) . uncouth.com domain was created on January 18. Therefore. in order to get the trademark.). "Yet Another Hierarchical Officious Oracle" is a backronym for this name. "Yahoo" had already been trademarked for barbecue sauce. Michael Moritz of Sequoia Capital provided Yahoo! with two rounds of venture capital. but Filo and Yang insist they selected the name because they liked the word's general definition.In April 1994. raising $33. Yahoo! had its initial public offering. Yang and Filo realized their website had massive business potential. raising approximately $3 million.stanford. at the end of 1994. Yang and Filo added the exclamation mark to the name. and on 2 March 1995. "Jerry's Guide to the World Wide Web" was renamed "Yahoo!".6 million shares at $13 each. On April 5. However. Yahoo! was incorporated. by selling 2. On 12 April 1996.edu/yahoo. unsophisticated. as in Gulliver's Travels by Jonathan Swift: "rude.8 million dollars. but even before that. 1995. Yahoo! had already received one million hits. the exclamation mark is often incorrectly omitted when referring to Yahoo! But many people belive that the name is inspired from a Indian song "Yahoo" featuring Shammi Kapoor." Its URL was akebono.
Yahoo! then acquired direct marketing company Yoyodyne Entertainment. Rocketmail. on 12 October 1998. 2001. When acquiring companies. On 7 February 2000. shares in Yahoo! Japan became the first stocks in Japanese history to trade at over ¥100. its shares rose about $16. unlike a fault with eBay earlier that year. Yahoo!. unlike the companies they acquired. yahoo.  Post dot-com bubble (2002-2005) Yahoo! was one of the few surviving companies after the dot-com bubble burst. many of the acquisitions were controversial and unpopular with users of the existing services. became Yahoo! Mail.com. SBC and Yahoo! launched a . Yahoo! acquired web hosting provider GeoCities. MSN. Although the merger never materialised the two companies decided to form a marketing/advertising alliance six years later in 2006. they claimed intellectual property rights for content on their servers. On the next day. in the hope of increasing the time a user stays at the portal. As a result. the cable news station CNBC also reported that Yahoo! and eBay were discussing a 50/50 merger.140 at that time). Yahoo! also acquired ClassicGames. which became Yahoo! Groups after the acquisition on 28 June 2000. Yahoo! stocks closed at an all-time high of $118. On 8 March 1997. or 4. Yahoo! and Google signed an agreement which would make Google power searches made on yahoo. Inc.000.  Dot-com bubble (2000-2001) Yahoo! stock doubled in price in the last month of 1999.com and turned it into Yahoo! Games. Yahoo! launched Yahoo! Pager. On 3 January 2000. reaching a price of 101. Web portal providers rushed to acquire companies to expand their range of services. on September 26.4 million yen ($962. Yahoo! often changed the relevant terms of service. Four11's webmail service.75 a share. Yahoo! diversified into a Web portal. Yahoo! formed partnerships with telecommunications and Internet providers to create contentrich broadband services to compete with AOL. Yahoo! stocks closed at an all-time low of $8. 16 days later.000.5 percent as the failure was blamed on hackers rather than on an internal glitch. For example. During the dot-com boom. 1998. In the late 1990s. Nevertheless.11. Another company Yahoo! acquired was eGroups.com was brought to a halt for a few hours as it was the victim of a distributed denial of service attack (DDoS). Excite and other Web portals were growing rapidly. On 26 June 2000. On 3 June 2002. On March 8. an instant messaging service that was renamed Yahoo! Messenger a year later. Lycos. On 28 January 1999. Yahoo! acquired online communications company Four11. at the height of the Dot-com boom.Like many search engines and web directories.
Yahoo! says they intend to support additional browsers in the future. thus allowing users unlimited storage.0 services. In June 2005. 2007.300. Yahoo! began to bolster its search services by acquiring other search engines. Yahoo! and Microsoft announced that Yahoo! Messenger and MSN Messenger would become interoperable. Yahoo! upgraded the storage of all free Yahoo! Mail accounts from 4 MB to 1 GB. In February 2005.  Yahoo! today Yahoo! Next is an incubation ground for future Yahoo! technologies currently in their beta testing phase. It added Yahoo! Messenger integration. Yahoo! acquired social bookmark site del. On February 18. Canada.us on 9 December 2005 and then playlist sharing community webjay on 9 January 2006.national co-branded dial service. it acquired Overture Services. The cuts represented 7 percent of the company's workforce of 14.gs. similar to Google Labs. the company launched its blogging and social networking service Yahoo! 360°. a Voice over IP and instant messaging service. On January 29. In 2007. Yahoo! acquired blo. On 9 July 2004. (which included Windows Live Messenger due to the networks' federation) and free text messages (not necessarily free to the receiver) to mobile phones in the U. On 13 October 2005. Yahoo! acquired Konfabulator and rebranded it Yahoo! Widgets. It contains forums for Yahoo! users to give feedback to assist in the development of these future Yahoo! technologies. In July 2003. Yahoo! offered users the chance to beta test a new version of the Yahoo! homepage. In late 2002. Yahoo! then bought online social event calendar Upcoming. and all Yahoo! Mail Plus accounts to 2 GB. it currently only supports Internet Explorer and Mozilla Firefox. Inc. Yahoo! and Verizon launched an integrated DSL service.org on 4 October 2005.S. In December 2002.000 employees as the company had suffered severely in its inability to effectively compete with industry search leader Google. Yahoo! continued acquiring companies to expand its range of services. and its subsidiaries AltaVista and AlltheWeb. Yahoo! dropped Google-powered results and returned to using its own technology to provide search results. In early 2006. Yahoo! released a new version of Yahoo! Mail. However. Yahoo! purchased photo sharing service Flickr. BT Openworld announced an alliance with Yahoo! On 23 August 2005. Yahoo! announced that the company was laying off 1. Employees . 2008.icio. such as Opera. in response to Google's release of Gmail. India and the Philippines. Yahoo! acquired e-mail provider Oddpost to add an Ajax interface to Yahoo! Mail Beta. Users of other browsers. particularly Web 2. on 24 August 2005. Google also released Google Talk. have criticised Yahoo! for this move. On 20 March 2005. On August 27. 2004. Yahoo! acquired Inktomi.. a desktop application and in July 2003. a service based on RSS feed aggregation. In 2004. Yahoo! took out the storage meters. On 29 March 2005. Yahoo! Launch became Yahoo! Music on 9 February 2005.
Microsoft had offered to raise its offer by $5 billion to $33 per share. 2008. On February 1. for approx. investments.are being invited to apply for an unknown number of new positions that are expected to open as the company expands areas that promise faster growth. were likely to drop below $25 per share and perhaps as low as $20 per share on May 5. Yahoo! considered alternatives to the merger with Microsoft.520 employees around the world as the company managed its way through the global economic downturn. Microsoft would approach shareholders directly in hopes of electing a new board and moving forward with merger talks (a hostile takeover). As of February 22. Later the same day.[dead link] In early March. Days later. On April 5. audience. including a merger with Internet giant Google or a potential transaction with News Corp. The value of Microsoft's cash and stock offer declined with Microsoft's stock price. At the time. Yahoo! stated that the original $45 billion offer was not acceptable. 2008. two Detroit-based pension companies have sued Yahoo! and their board of directors for breaching their duty to shareholders by opposing Microsoft's takeover bid and pursuing "value destructive" third-party deals. Following this. but that they wanted a better offer. On May 3. In addition. saying "They are going to burn the furniture if we go hostile. which closed at $28. Google CEO Eric Schmidt went on record saying that he was concerned that a potential Microsoft-Yahoo! merger might hurt the Internet by compromising its openness. They are going to destroy the place. Microsoft CEO Steve Ballmer sent a letter to Yahoo!'s board of directors stating that if within three weeks they had not accepted the deal. Microsoft made an unsolicited takeover bid to buy Yahoo! for US$44. while Yahoo! demanded $37 per share. which would put .2 billion by April 4. Yahoo! began laying off 1. that Yang would be stepping down as CEO. On December 10. Yahoo! decided to reject Microsoft's offer as "substantially undervaluing" Yahoo!'s brand.6 billion in cash and stock. In response. Yahoo! stated on April 7 that they were not against a merger. However. a supplier of internet video players and video advertising tools.67 per share on May 2. Yahoo! acquired Cambridge. falling to $42. In February 2008. on February 11. analysts were skeptical about the wisdom of a business combination.  Acquisition attempt by Microsoft Microsoft and Yahoo! pursued merger discussions in 2005. 2008. they stated that Microsoft's "aggressive" approach was worsening their relationship and the chances of a "friendly" merger. that were all ultimately unsuccessful. One of Ballmer's lieutenants suggested that Yang would implement a poison pill to make the takeover as difficult as possible. instead of the originally proposed Microsoft deal." Analysts said that Yahoo!'s shares. Yahoo! announced on November 17. During a meeting between Ballmer and Yang. after its friendly takeover offer was rebuffed by Yahoo!. 2008. 2008. and growth prospects. Microsoft withdrew the offer. 2006 and 2007. there has been considerable discussion of having Time Warner's AOL and Yahoo! merge. Massachusetts-based Maven Networks. $160 million.
 On June 12. 2008.Yahoo! in turn will become the sales team for banner advertising for both companies. 2008 Yahoo! settled with Carl Icahn. calling the current board irrational in its approach to talks with Microsoft.02 per share in Monday trading and trimmed about $6 billion off of its market capitalization. Billionaire investor Carl Icahn. Some suggested that institutional investors would file lawsuits against Yahoo!'s board of directors for not acting in shareholder interest by refusing Microsoft's offer. Microsoft and Yahoo! agreed to a deal that will see Yahoo!'s websites use both Microsoft's search technology and search advertising. On July 7. Bing. Yahoo! announced that it had ended all talks with Microsoft about purchasing either part of the business (the search advertising business) or all of the company.14 per share. In July. Microsoft said it would reconsider proposing another bid for Yahoo! if the company's nine directors were ousted at the annual meeting scheduled to be held on August 1. Upon this announcement. 2008. Under the deal. Also. 2008. almost 10 months after Microsoft's initial offer of $33 per share. According to market analysts.significant pressure on Yang to engineer a turnaround of the company. Yahoo!'s stock (YHOO) dropped to a 52-week low. on June 12. 2008. Talks had taken place the previous weekend (June 8). trading at only $8. 2008. many executives and senior employees announced their plans to leave the company as it appears that they lost confidence in Yahoo!'s strategies. While Microsoft will provide . Microsoft believes it would be able to better negotiate with a new board. Microsoft was not required to pay any cash up front to Yahoo! The day after the deal was announced. it was announced with a 10 year deal that Microsoft will have full access to Yahoo!'s search engine to be used in future Microsoft projects for its search engine. launched a proxy fight to replace Yahoo!'s board.94 per share. 2008. these pending departures impacted Wall Street's perception of the company. about 60% lower than Microsoft's takeover bid a year earlier. 2009. On May 5. On July 21. On November 20.  Change in direction under Carol Bartz Yahoo! has tried to change its direction since chief executive Carol Bartz replaced co-founder Jerry Yang in January 2009. On November 30. Yahoo! announced a non-exclusive search advertising alliance with Google.$33 per share. during which Microsoft allegedly told Yahoo! that it was no longer interested in a purchase of the entire company at the price offered earlier -. On July 29. Yahoo!'s share price declined more than 10% to $15. agreeing to appoint him and two allies to an expanded board. Microsoft offered to buy Yahoo!'s search business for $20 billion. following Microsoft's withdrawal Yahoo!'s stock plunged some 15% lower to $23.
and other sites. 2009 Ms. called Metro. Yahoo! launched a new version of its front page. The new page allows users to customize it through the prominent "My Favorites" panel on the left side and integrate third-party web services and launch them within one page.algorithmic search results. Bartz told PCWorld that she struggled with the question of what Yahoo is when she took over as CEO in January 2009. Yahoo! concluded that users consider it their "home on the Internet" . On July 21. Such applications include pages of Netflix. After talking to many users in about 10 countries. E-trade. On October 28. 2009. Facebook. she said. Yahoo! will control the presentation and personalization of results for searches on its pages.
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