The rise and fall of Yahoo

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Yahoo is a well-known and very famous web portal on the internet. Yahoo search engine helps the users to search required informations like entertainment, sports, finance and even more. It inspires more than half a billion consumers each month in more than 30 languages. Jerry Yang and David Filo founded Yahoo in January 1994 and they integrated it on March 2, 1995. Google and Facebook appeared as the next invention of online leaders so Yahoo has gone flat-footed. These two online heads are taking a mounting share of Yahoo’s display ad business. Further, it directed to a great fall in Yahoo sales since 2008. The firm has found many ways to enhance its profit margins and remain grossing up. However, the pressure for transform is on and it describes.

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  • Yang opposed the takeover of Microsoft’s Steve Ballmer in 2008. Jerry Yang was the man who battled hardest to decline Ballmer’s offer.
  • The current value of Yahoo about $19bn but now Yang has disappeared so it may need a more drastic fix.

Defeat of relevant and value

Dan Olds said that Yahoo is still huge web portal, but it cannot fight against Facebook for the social network or Google in search. Yahoo will continue to acquire ads as due to its immense size. But, if they are not seen as pertinent, the quality of those ads and the value paid will fall. In today’s competition, companies that are not seen as important are dead. Recently, Yahoo appointed a new chief administrative Scott Thompson who is a previous manager of eBay’s online payment company PayPal.

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Carol Bartz has been changed by Scott Thompson as his strategy did a few things for Yahoo. Thompson is a finance guy and he does not come from advertising or media background. But, he knows that how to package his company for huge sale. A sale of all or part of the business seems more liable after the desertion of Yang. Yahoo is one of the top websites in the world and there are lot of chances to improve its sales and profits. But, if it cannot be redefined itself, it could be dotted winds.

Management and business mistakes

Yahoo has bought by one of America’s major wireless service providers Verizon for the rate of $4.8 billion on July 25, 2016. However, Yahoo has been on an effortless spiral for a while now. It has a history of business and supervision errors that make many outsiders quiver their head. Jerry Yang did not accept Microsoft’s offer for $50 billion in 2008. After that, Yahoo has sold for around $5 billon to Verizon. It is truly a bad decision of not selling Yahoo to Microsoft and it leads to the way of decline. Further, Yang relieved from his responsibilities after Carol Bartz entered as the new CEO. When Marissa Mayer was selected as Yahoo’s CEO, it was said that she would take the company back to its supremacy.  But, that definitely did not occur. It is a disgrace to see one of the top companies as like Yahoo drop down with its bad decisions.