Yahoo has been recently bought for 4.8 billion by the Verizon. This is one of the biggest acquisitions of the Verizon till date. It was not easy for both of them to fix this deal. It took them months to agree over few common statements. Yahoo was always a profitable company. What went wrong that Yahoo had to sell them? Let us look into the journey of the company so far and find it.
Yahoo was founded in 1994 by 2 graduates from Stanford, David Filo and Jerry Yang. They renamed their website to Yahoo within few months of its launch. They wanted to create a guide for the World Wide Web, a search engine for the people. In the year 1996, Yahoo started offering stocks to the public. The share price of the Yahoo went up by 154 percent right on the first days of the IPO and settled at $33 each share after touching till $43 each.
In the year 2000, the dot com boom was expected to burst. Before going dirt low, Yahoo went sky-high same year. The pre-split price of the shares went $475 and later also touched $8.11 within few months. Five years later, the popular photo sharing website Flickr by Canada’s Ludicorp Research & Development was also acquired by Yahoo in the year March 2005. The deal bid was not disclosed however the expected sales of the company was supposed to be between $40 million to $50 million.
For straight 2 years in a row, Yahoo was offered a bid price of $44.6 Billion by Microsoft however they refused to settle and kept doing business. In the year 2007, Jerry Yang replaced Terry Semel for the position of the CEO of the company as the company was not performing well. The annual package of Semel was paid at 70 million a year. In the year 2009, Jerry Yang also gave upon Yahoo and resigned. Carol Bartz steps in as a new CEO on role. Later Scott Thompson from PayPal stepped in against Bartz and later again Marissa Mayer replaced Thompson. Yahoo laid off 1500 employees in the year 2016 and is finally signed with Verizon for $4.8 Billion.
