Mistakes that led to the downfall of yahoo!!


Recently Verizon Wireless US Giant purchased yahoo for $4.83 billion in cash.  90s  kid remember YAHOO , a Basic Home page with email and chat rooms ;P .

Yahoo’s Downfall is not caused by the rise of GOOGLE , it’s the bad decisions that it took. Let’s see the yahoo timeline and its poor decisions-



1998 – It refused to purchase Google for $1 million

Here is excerpt from The Google Story (David A. Vise) highlights Google’s earlier buy out offer to AltaVista and seems to suggest that Yahoo too would have been asked to pay in the region of $1 million:


Seated in Palo Alto’s Mandarin Gourmet restaurant in March 1998, Page and Brin prepared to pitch Paul Flaherty, a Stanford Ph.D. and an architect of AltaVista, on the merits of their superior search engine technology. AltaVista, they hoped, would pay as much as $1 million to get access to the soon-to-be-patented PageRank system. Brin and Page would then be able to resume their studies at Stanford.

With the help of Stanford professors and the Office of Technology Licensing, Brin and Page tried unsuccessfully to sell their PageRank system to Excite and other search engines.

Yahoo, seemingly a logical buyer because it relied on directories edited by people and didn’t have a fast way to scour the entire Internet, also turned down the chance to buy or license the Google technology.

In part, Yahoo rejected it because the firm wanted computer users to spend more time on Yahoo. The Google search engine was designed to give people fast answers to their questions by swiftly sending them to the most relevant Web site. The Yahoo directories were designed both to answer questions and to keep people on the Yahoo site, where they could shop, view ads, check their email, play games, and spend more money and time, rather than less.


2000 – YAHOO valued at $125bn at height of dot.com 


2002- YAHOO tries to buy google for $3bn , GOOGLE asks for $5bn , Yahoo Rejects 

P.S –  Was still a good deal at that time as the company’s valuation at the time was more than $5bn.


2005 – YAHOO purchased online photo sharing site Flickr.

P.S – Don’t know what the hell they did it with.


2008 – Micorosoft offered $44.6 Billion to buy, YAHOO turned it down. 

Best Deal Looking at the Scenario.


2013- Acquired tumblr for $1.1bn 

2016 – YAHOO was sold to VERIZON wireless US giant

After a net loss of $4.4bn in 2015, the company was sold,or $4.83 billion in cash.


Now i need no explanation !!



[source//coverimage: bbc/toi//flickr]