Yahoo Case Study
Case #13
Yahoo! Inc. – Reorganizing Yahoo!
Yahoo! – Then and Now
In 1994 Yahoo! was created by Jerry Yang and David Filo. They started off this new venture by creating an internet browser that provided users with a platform to browse and view the internet. Yahoo! began generating revenue through online advertisements, ad placement fees, promotions and sponsorships. In 1995 Yahoo! was incorporated and through its initial IPO in April of 1996 were able to raise $38.8 million through initial share sales. In the beginning phase of the company, Yahoo! continued to see substantial growth in these revenues until the early 2000’s. As many other companies began to emerge, Yahoo! started to lose some of the market share they had for so long dominated. In 2006, they recognized a significant decrease in net income. In 2005 net income was reported at $1,896 million, an all time high for Yahoo, and within one year they experienced a decrease of almost 60% in net income with $751 million reported at year end of 2006. Yahoo!’s homepage had a plethora of services that it offered to users such as e-mail, music, mobile, small business services, health, finance, games, movies, personals, etc. With no singular goal in mind but to offer as many services in one stop, they began to lose more and more market share over time. They acquired other companies with hopes of integrating them and remaining competitive but were unsuccessful. In the meantime, Google and Facebook were flourishing in the emerging technological market.
In more recent years, Yahoo! has gone through five CEO’s, with the latest being fired after falsifying his educational achievements and claiming to have a computer science degree that he never received. Fast forward to today and the newly appointed CEO, Marissa Mayer, has a new vision for Yahoo! with her background and experience with Yahoo!’s main competition, Google. She brings to the table innovative desires for the future of the company. In 2010 Yahoo!
Yahoo! Inc. – Reorganizing Yahoo!
Yahoo! – Then and Now
In 1994 Yahoo! was created by Jerry Yang and David Filo. They started off this new venture by creating an internet browser that provided users with a platform to browse and view the internet. Yahoo! began generating revenue through online advertisements, ad placement fees, promotions and sponsorships. In 1995 Yahoo! was incorporated and through its initial IPO in April of 1996 were able to raise $38.8 million through initial share sales. In the beginning phase of the company, Yahoo! continued to see substantial growth in these revenues until the early 2000’s. As many other companies began to emerge, Yahoo! started to lose some of the market share they had for so long dominated. In 2006, they recognized a significant decrease in net income. In 2005 net income was reported at $1,896 million, an all time high for Yahoo, and within one year they experienced a decrease of almost 60% in net income with $751 million reported at year end of 2006. Yahoo!’s homepage had a plethora of services that it offered to users such as e-mail, music, mobile, small business services, health, finance, games, movies, personals, etc. With no singular goal in mind but to offer as many services in one stop, they began to lose more and more market share over time. They acquired other companies with hopes of integrating them and remaining competitive but were unsuccessful. In the meantime, Google and Facebook were flourishing in the emerging technological market.
In more recent years, Yahoo! has gone through five CEO’s, with the latest being fired after falsifying his educational achievements and claiming to have a computer science degree that he never received. Fast forward to today and the newly appointed CEO, Marissa Mayer, has a new vision for Yahoo! with her background and experience with Yahoo!’s main competition, Google. She brings to the table innovative desires for the future of the company. In 2010 Yahoo!