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Friday, 17 February 2017

5 mistakes by Yahoo that killed it


5 mistakes by Yahoo that killed it

Yahoo is over. The company is gone. It announced that once its deal with Verizon closes, it will rename itself to Altaba. Verizon, meanwhile, may or may not continue to keep the name of the mail Yahoo Mail or dub the instant messenger as Yahoo Messenger.
This comes after the company recently saw two big data breaches that shook it and has also tainted its image majorly. The company has alienated its users and is going through losses with its current CEO Marissa Mayer and five other directors leaving it soon.  However, Yahoo was not always like this. The company was founded by  Jerry Yang and David Filo in January 1994 and was seen as one of the pioneers of the early internet era during 1990s. There was a time when it was the most popular website in United states but the company started bleeding since the late 2000s.
Today everything around and related to Yahoo reminds of all the mindless decisions that the company has taken in the past. Here are 5 top mistakes -- in hindsight -- made by Yahoo that have now led to its demise.

1. Refusing to buy Google for just $1 million: Yahoo failed to gauge its biggest competitors and turned down the $1 million deal. Yes, Yahoo could have easily turned the tables if it had said yes to Larry Page and Sergei Brin when the duo approached it, selling Google. Page and Brin wanted to focus on their studies at Stanford  and therefore were looking for a company to sell their small startup called PageRank system at a small amount of $1 million. Today Google is the one of the most valuable companies worth over $500 billion.


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2. Failing to buy Facebook: As if saying no to Google was not enough, Yahoo. According to the book called The Facebook Effect by David Kirkpatrick, Yahoo initially offered $1 billion to Facebook but later lowered it to $850 million. David writes that Facebook in 10 minutes made its mind to decline the offer.


3. Hiring wrong CEOs: According to an Inquirer report , Yahoo has repeatedly hired  wrong CEOs. The report states that none of the CEOs at Yahoo including Marissa Mayer had a "strategic vision" that could match what Eric Schmidt at Google brought

4. Called itself a media company: Though Yahoo worked as a tech company, it failed to acknowledge itself one and stubbornly addressed itself as the media company. It got swayed away by the profit which it earned initially through ads and overlooked the tech involved in it.
5. Declining Microsoft's acquisition: This was the final nail in the coffin. In 2008, Microsoft had showed its interest to buy Yahoo for $44.6 billion. The company refused. Recently Verizon bought its core web assets in a deal worth $4.8 billion.

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