Yahoo! isn’t a new name for any internet user. Yahoo! search engine, Yahoo! Mail, Yahoo! Maps, Yahoo! Answers, Yahoo! News, Yahoo! Video, Sports, Social Media, web portal, and whatnot, it provides several services for its users. The company is headquartered in Sunnyvale, California and was founded in the January of 1995 by two Stanford graduates David Filo and Jerry Yang.
Did you know that Yahoo began as a collection of favorite websites of its two Founders Jerry and David? Yes. The website in fact was made to be their guide to World-Wide-Web initially and named so. As the popularity of the website increased, it further was renamed Yahoo! in the year 1995. Yahoo! is considered to be the backronym of “ Yet Another Hierarchically Organized Oracle” or in some ‘Organized’ was replaced by ‘Officious’.
Yahoo! was the forerunner in its business for a long time and has acquired several companies. The company’s first acquisition was of a search engine named Net Control in the year 1997. Starting there, by the time the company completed its two-decade anniversary, i.e. by the year 2015, the company’s total acquisitions have reached a count of 114 companies.
Among them, few notable acquisitions include those of a mailing service called RocketMail which later became Yahoo! Mail post-acquisition and the acquisition of a gaming network called ClassicGames.com which later became the Yahoo! Games that we now know. Along with these the company also acquired the famous microblogging site-cum-social networking site Tumblr in the year 2013.
The company also released an instant messenger of its own on 21st June 1999. The company went on extending its business, as a part of it the company also bought 40% shares of a Chinese eCommerce company Alibaba. Yahoo! Also bought out Flickr, a famous Internet Photo Network. The company gave tough competition to its significant rivals like Google and survived through the collapse of a lot of internet-based companies in the early 2000s but went through heavy losses economically.
Yahoo! became public through its initial public offering in the year 1996. The share price of the company rose over 600% within 2 years of its first public offering. But who owns Yahoo! now? Is it still owned by Jerry and David? Or someone else? Let’s find out.
Who owns Yahoo!?
We know that Yahoo! was founded by Jerry Yang and David Filo, the company saw lots of profit under their ownership for several years and rose to greater heights. But the company was later sold to a very least sum of $4.48 billion in the year 2017.
If we go back into the history of Yahoo!, we see lots of ups and downs that Yahoo! has sustained over the years. And how it expanded its business to several other services and how many companies it has acquired and how it emerged as one of the top providers of web services. As a matter of fact, Microsoft Corporation offered to buy Yahoo! for an amount of $44.6 billion, but Yahoo! rejected the offer formally, saying that the offered bid undervalues the company.
After the rejection of the proposal, both companies stayed in continuous negotiations and they came to an agreement to use Bing, the search engine of Microsoft for the Yahoo! website and that it would also handle premium ads for the Microsoft website, which was scheduled to last for 10 years following the year of the agreement, 2009. Ironically, by 2011 the capitalization of Yahoo! in the market reached $22.24 billion, which is only about half of the money offered by Microsoft, 3 years prior to that.
In 2012, Marissa Mayer was appointed as the CEO and the President of Yahoo! After that, by the end of 2013, the share price of the company has increased to more than double its price. But it was not an all-up journey for Yahoo! under the leadership of Marissa, it has seen several significant downs that finally led to the sale of the company.
In 2016, Verizon Media announced that it is gonna acquire Yahoo!’s core business, for $4.83 billion and that Yahoo! would operate as a separate entity under ‘Oath’, which was newly formed and also included AOL and HuffPost along with Yahoo!, all three separate entities under the name Oath. But following that a major security data breach happened at Yahoo! In which sensitive information of about a billion customers was obtained by the hackers. Taking this into consideration Verizon media reduced the amount it offered before by $350 million and completed the deal at $4.48 billion in June 2017.
Yahoo!, though was worth a lot of money during the peaks of its business, has suffered significant losses and was sold to Verizon media for the sum of $4.48 billion. The stock that Yahoo! Purchased in the Chinese eCommerce company Alibaba, was not part of the deal with Verizon. Alibaba along with few other portions of Yahoo! That were not part of the deal was operated under a separate execution named Altaba until the shares of Alibaba were sold. Later the reformed company Altaba liquified and made a distribution to its stockholders.