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Yahoo

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This article is about the web portal. For the company, seeYahoo! Inc. (2017–present).For the now-unaffiliated Japanese company, seeYahoo Japan.For other uses, seeYahoo (disambiguation).

Yahoo(/ˈjɑːhuː/,styledyahoo!in itslogo)[4][5]is an Americanweb servicesprovider. It is headquartered inSunnyvale, California,and operated by the namesake companyYahoo! Inc.,which is 90% owned byinvestment fundsmanaged byApollo Global Managementand 10% byVerizon Communications.

Yahoo
Logo used since 2019
Type of businessSubsidiary
Type of site
Web portal and online services
FoundedJanuary 1994;30 years ago(1994-01)
Headquarters
Sunnyvale, California
,
United States
Area servedWorldwide
Owners
Founder(s)
ProductsList of products
Revenue$7.4 billion (2020)[1]
Employees8,600 (2017)[2]
Parent
URLyahoo.comEdit this at Wikidata
AdvertisingYahoo Ad Tech[3]
RegistrationOptional
Current statusActive

It provides aweb portal,search engineYahoo Search,and related services, includingMy Yahoo,Yahoo Mail,Yahoo News,Yahoo Finance,Yahoo Sportsand its advertising platform,Yahoo Native.

Yahoo was established byJerry YangandDavid Filoin January 1994 and was one of the pioneers of the early Internet era in the 1990s.[6]However, its use declined in the 2010s as some of its services were discontinued, and it lost market share toFacebookandGoogle.[7][8]

History

Main article:History of Yahoo
For a chronological guide, seeTimeline of Yahoo.

Founding

Jerry YangandDavid Filo,the founders of Yahoo
The Yahoo home page in 1994, when it was a directory, asearch enginewas added in 1995

In January 1994,Jerry YangandDavid Filowere electrical engineering graduate students atStanford University,when they created a website named "Jerry and David's guide to the World Wide Web".[9][10][11][12]The site was a human-editedweb directory,organized in a hierarchy, as opposed to a searchable index of pages. In March 1994, "Jerry and David's Guide to the World Wide Web" was renamed "Yahoo!" and became known as theYahoo Directory.[10][13][14][15][16]The "yahoo.com" domain was registered on January 18, 1995.[17]

The word "yahoo" is abackronymfor "Yet AnotherHierarchically Organized Oracle "[18]or "Yet Another Hierarchical Officious Oracle".[19]The term "hierarchical" described how the Yahoo database was arranged in layers of subcategories. The term "oracle" was intended to mean "source of truth and wisdom", and the term "officious", rather than being related to the word's normal meaning, described the many office workers who would use the Yahoo database while surfing from work.[20]However, Filo and Yang insist they mainly selected the name because they liked the slang definition of a "yahoo" (used by college students in David Filo's native Louisiana in the late 1980s and early 1990s to refer to an unsophisticated, rural Southerner): "rude, unsophisticated, uncouth."[21]This meaning derives from theYahoorace of fictional beings fromGulliver's Travels.

Yahoo was incorporated on March 2, 1995. In 1995, asearch enginefunction, called Yahoo Search, was introduced. This allowed users to search Yahoo Directory.[22][23]Yahoo soon became the first popular online directory and search engine on theWorld Wide Web.[24]

Expansion

Map showing localized versions of Yahoo web portals, as of 2023
Yahoo sign atTimes Square

Yahoo grew rapidly throughout the 1990s. Yahoo became apublic companyvia aninitial public offeringin April 1996 and its stock price rose 600% within two years.[25]Like many search engines and web directories, Yahoo added a web portal, putting it in competition with services includingExcite,Lycos,andAmerica Online.[26]By 1998, Yahoo was the most popular starting point for web users,[27]and the human-edited Yahoo Directory the most popular search engine,[15]receiving 95 million page views per day, triple that of rival Excite.[25]It also made many high-profile acquisitions. Yahoo began offering freee-mailfrom October 1997 after the acquisition ofRocketMail,which was then renamed to Yahoo Mail.[28]In 1998, Yahoo replacedAltaVistaas the crawler-based search engine underlying the Directory withInktomi.[29]Yahoo's two biggest acquisitions were made in 1999:Geocitiesfor $3.6 billion[30]andBroadcast.comfor $5.7 billion.[31]

Its stock price skyrocketed during thedot-com bubble,closing at an all-time high of $118.75/share on January 3, 2000. However, after the dot-com bubble burst, it reached a post-bubble low of $8.11 on September 26, 2001.[32]

Yahoo began usingGooglefor search in June 2000.[33][34]Over the next four years, it developed its own search technologies, which it began using in 2004 partly using technology from its $280 million acquisition of Inktomi in 2002.[35]In response to Google'sGmail,Yahoo began to offer unlimited email storage in 2007. In 2008, the company laid off hundreds of people as it struggled from competition.[36]

In February 2008,Microsoftmade an unsolicited bid to acquire Yahoo for $44.6 billion.[37][38]Yahoo rejected the bid, claiming that it "substantially undervalues" the company and was not in the interest of its shareholders. Although Microsoft increased its bid to $47 billion, Yahoo insisted on another 10%+ increase to the offer and Microsoft cancelled the offer in May 2008.[39][40][41][42]

Carol Bartz,who had no previous experience in Internet advertising, replaced Yang as CEO in January 2009.[43][44]In September 2011, after failing to meet targets, she was fired by chairmanRoy J. Bostock;CFOTim Morsewas named as Interim CEO of the company.[45][46]

In April 2012, after the appointment ofScott Thompsonas CEO, several key executives resigned, includingchief product officerBlake Irving.[47][48]On April 4, 2012, Yahoo announced 2,000 layoffs,[49]or about 14% of its 14,100 workers by the end of year, expected to save around $375 million annually.[50]In an email sent to employees in April 2012, Thompson reiterated his view that customers should come first at Yahoo. He also completely reorganized the company.[51]

On May 13, 2012, Thompson was fired and was replaced on an interim basis byRoss Levinsohn,recently appointed head of Yahoo's new Media group. Several associates ofThird Point Management,includingDaniel S. Loebwere nominated to theboard of directors.[52][51][53][54]Thompson's total compensation for his 130-day tenure with Yahoo was at least $7.3 million.[55]

On July 15, 2012,Marissa Mayerwas appointed president and CEO of Yahoo, effective July 17, 2012.[56][57]

In June 2013, Yahoo acquiredbloggingsiteTumblrfor $1.1 billion in cash, with Tumblr's CEO and founderDavid Karpcontinuing to run the site.[58][59][60][61]In July 2013, Yahoo announced plans to open an office in San Francisco.[62]

On August 2, 2013, Yahoo acquiredRockmelt;its staff was retained, but all of its existing products were terminated.[63]

Data collated by comScore during July 2013 revealed that, during the month, more people in the U.S. visited Yahoo websites than Google; the first time that Yahoo outperformed Google since 2011.[64]The data did not count mobile usage, nor Tumblr.[65]

Mayer also hiredKatie Couricto be the anchor of a new online news operation and started an online food magazine. However, by January 2014, doubts about Mayer's progress emerged when Mayer fired her own first major hire, Henrique de Castro.[66]

On December 12, 2014, Yahoo acquiredvideo advertisingproviderBrightRollfor $583 million.[67]

On November 21, 2014, Yahoo acquiredCooliris.[68]

In August 2023, it was announced Yahoo had acquired theSan Francisco-headquartered social investing platform, Commonstock.[69]

In April 2024, it was announced Yahoo had acquired theAI-driven news aggregator app,Artifact.[70]

Decline, security breaches, and sale

Main article:Yahoo data breaches

By December 2015, Mayer was criticized as performance declined.[71][72][73][74]Mayer was ranked as the least likable CEO in tech.[75][76]

On February 2, 2016, Mayer announced layoffs amounting to 15% of the Yahoo workforce.[77]

On July 25, 2016,Verizon Communicationsannounced the acquisition of Yahoo's core Internet business for $4.83 billion.[78][79][80][81]The deal excluded Yahoo's 15% stake inAlibaba Groupand 35.5% stake inYahoo Japan.[82][83]

On February 21, 2017, as a result of theYahoo data breaches,Verizon lowered its purchase price for Yahoo by $350 million and reached an agreement to share liabilities regarding the data breaches.[84][85]

On June 13, 2017, Verizon completed the acquisition of Yahoo andMarissa Mayerresigned.[86][87]

Yahoo, AOL, andHuffPostwere to continue operating under their own names, under the umbrella of a new company, Oath Inc., later calledVerizon Media.[88][89]

The parts of the original Yahoo! Inc. which were not purchased byVerizon Communicationswere renamedAltaba,which was later liquidated, making a final distribution in October 2020.[90]

In September 2021,investment fundsmanaged byApollo Global Managementacquired 90% of Yahoo.[91][92]

In November 2021, Yahoo announced that it was ending operations in mainland China due to the increasingly challenging business and legal environment.[93]Previously, the company discontinued China Yahoo Mail on August 20, 2013.[94]

In 2023, Yahoo announced that it would cut 20% of its workforce. The move followed mass layoffs from other tech giants includingGoogle,Microsoft,Twitter, Inc,Meta,andAmazon.The company is set to lay off roughly 1,000 staff members of their 8,600 workers.[95]

Chief executive officers

Eleven chief executives and interim leaders have led the Yahoo companies since 1995. They are:

Products and services

For a list of all current and defunct services offered by Yahoo, seeList of Yahoo-owned sites and services.

Data breaches

Main article:Yahoo data breaches

On September 22, 2016, Yahoo disclosed adata breachthat occurred in late 2014, in which information associated with at least 500 million user accounts,[101][102]one of the largest breaches reported to date.[103]The United States indicted four men, including two employees of Russia'sFederal Security Service(FSB), for their involvement in the hack.[104][105]On December 14, 2016, the company revealed that another separate data breach had occurred in 2014, with hackers obtaining sensitive account information, including security questions, to at least one billion accounts.[106]The company stated that hackers had utilized stolen internal software to forgeHTTP cookies.[107][108]

On October 3, 2017, the company stated that all 3 billion of its user accounts were affected by the August 2013 theft.[109][110][111][112][113]

Criticism

Main article:Criticism of Yahoo

DMCA notice to whistleblower

On November 30, 2009, Yahoo was criticized by theElectronic Frontier Foundationfor sending aDMCAnotice towhistleblowerwebsite "Cryptome"for publicly posting details, prices, and procedures on obtainingprivate informationpertaining to Yahoo's subscribers.[114]

Censorship of private emails affiliated with Occupy Wall Street protests

After some concerns overcensorshipof private emails regarding a website affiliated withOccupy Wall Streetprotests were raised, Yahoo responded with an apology and explained it as an accident.[115][116][117]

Partners and sponsorships

The 2015DublinLGBTQ Pride Festival, sponsored by Yahoo

On September 11, 2001, Yahoo announced its partnership withFIFAfor the2002 FIFA World Cupand2006 FIFA World Cuptournaments. It was one of FIFA's 15 partners at the tournaments. The deal included co-branding the organization's websites.[118]

Yahoo sponsored the2012 Sundance Film Festival.[119] NBC Sports Groupaligned with Yahoo Sports the same year with content and program offerings on mobile and desktop platforms.[120]

Yahoo announced television video partnerships in 2013 withCondé Nast,[121]WWE,ABC NEWS,andCNBC.[122]Yahoo entered into a 10-year collaboration in 2014, as a founding partner ofLevi's Stadium,home of theSan Francisco 49ers.[123]

TheNational Basketball Associationpartnered with Yahoo Sports to stream games, offer virtual and augmented-reality fan experiences, and in 2018NBA League Pass.[124][125]Yahoo Sportsbook launched in November 2019, a collaboration with BetMGM.[126][127]

BuzzFeedacquiredHuffPostfrom Yahoo in November 2020, in a stock deal with Yahoo as a minority shareholder.[128][129]The NFL partnered with Yahoo in 2020, to introduce a new "Watch Together" function on the Yahoo Sports app for interactive co-viewing through a synchronized livestream of local and primetime NFL games.[130]ThePaley Center for Mediacollaborated withVerizon Mediato exclusively stream programs on Yahoo platforms beginning in 2020.[131]

Yahoo became the main sponsor for thePramac Racingteam and the first title sponsor for the 2021 ESport/MotoGP Championship season.[132]Yahoo, the official partner for the September 2021New York Fashion Weekevent also unveiled sponsorship for theRebecca Minkoffcollection via aNFTspace.[133]In September 2021, it was announced that Yahoo partnered withShopify,connecting the e-commerce merchants on Yahoo Finance, AOL and elsewhere.[134]

See also

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