ASSIGNMENT #4

Name of Course Instructor: Syed Rizwan Ali

Section: E Program: BBA TOPIC: Yahoo
Submission Date: 24/12/2021 Maximum Marks:
Name Registration No.
MUHAMMAD
L1F19BBAM0002
IRFAN
Subject Fundamentals of Marketing

Yahoo Introduction:

Yahoo was incorporated on March 2, 1995. In 1995, a search engine function, called Yahoo
Search, was introduced. This allowed users to search Yahoo Directory. Yahoo soon became the
first popular online directory and search engine on the World Wide Web.

Parent: Original Yahoo! Inc. 1995-2017

Founders Jerry Yang; David Filo

Advertising: Yahoo Native

Success Story

Yahoo! is one of the two biggest Internet companies in the world with nearly 650 million
unique users visiting their website every month. It started off a web directory but has
progressed to include categories like news, mail, finance, maps, sports and much more. It
has become a mini universe where people can find all the resources they need to work on
the internet.

It offers its services in 30 languages and in 2013 was the most used portal in the U.S.
overtaking longtime rival Google. In 2012, it earned profits of $3.94 billion against a
revenue of $5 billion. That is 79% profit percentage on the revenue earned which is the
highest among all the Fortune 500 companies.

Failure Story

Yahoo! has never had a real vision

When Jerry Yang and David Filo conceived in January 1994 what would later become Yahoo!,
they were still only students at Stanford. All this strangely reminiscent of the story of Google’s
creation a few years later in Stanford by students Larry Page and Sergey Brin.

A monumental casting error for its CEO in 2001

At the top of the dot-com bubble, Yahoo!’s stock reached a record high of $118.75 on January 3,
2000. After the dot-com bubble burst, the Yahoo! share reached a low of $8.11 on September 26,
2001.

Acquisitions at a golden price for nothing

The GAFAM have become as powerful by making a very large number of acquisitions over the
course of their history. All these acquisitions do not prove to be successes, but in the whole, there
are always some that prove to be a great success. A pioneer among Web giants, Yahoo! has not
escaped this trend and has also made many acquisitions in its history.

Great missed opportunities

Throughout its history, Yahoo! has therefore made many acquisitions at golden price that have
resulted in nothing. To this problem is also added the bad tendency of Yahoo! to miss great
opportunities that could have changed his future.

Rejection of various Microsoft acquisition offers

Aware of Google’s rise to power, Microsoft and Yahoo! have discussed an acquisition opportunity
several times in 2005, 2006 and 2007. While analysts seem sceptical about the combination of
these companies’ technologies, Microsoft continues to be interested in Yahoo! and finally
proposes $44.6 billion in early 2008 to buy all of Yahoo!

The final blow with the appointment of Marissa Mayer as CEO

In the middle of 2012, Yahoo! is trying to revive again by naming Marissa Mayer who made a
successful career at Google. This appointment as CEO of Marissa Mayer gives rise to a lot of
hope. Incidentally, Marissa Mayer becomes the youngest CEO of a Fortune 500 company.

Current Status:

After more than two decades, Yahoo's time as an independent company has finally come to an
end. Verizon (VZ) officially completed its deal to acquire Yahoo's (YHOO) core Internet assets
for $4.48 billion after months of uncertainty about the deal.