Verizon communications acquired US internet firm Yahoo for $ 4.8 Billion. 22-year- old Yahoo sold in the amount which is less than the 4 % of the market capital of the yahoo before 16 years. In these 16 years, the world of Yahoo has turned upside down.
Before 16 years the market capital of yahoo was 27 times greater than the apple. A humongous
American communication firm Verizon has acquired YAHOO for $ 4.8 Billion. YAHOO was the world’s biggest tech company in 2000 when the market capital of the company was $ 128 billion which is the maximum till now for any firm.
6 MISTAKES responsible for the downfall of the firm-
1- Google offer twice YAHOO to buy it, but YAHOO rejected both times. Today Google is the second biggest tech company in the world with a market capital of 34.12 lac crore. 2- Got a chance to buy Facebook and the deal was almost set, but Yahoo decreases the value of the deal due to which Zuckerberg stepped back from the deal. The deal was set in $ 1 billion but later Yahoo decreased this amount to $ 87.5 crore. It makes Zuckerberg annoyed. Today the market capital of FB is Rupees 23.24 lac crore.
2- Got a chance to buy Facebook and the deal was almost set, but Yahoo decreases the value of the deal due to which Zuckerberg stepped back from the deal. The deal was set in $ 1 billion but
later Yahoo decreased this amount to $ 87.5 crore. It makes Zuckerberg annoyed. Today the market capital of FB is Rupees 23.24 lac crore.
(Make my business online is a renowned web designing company in Delhi NCR).
3- Rejected the offer of the Microsoft stating YAHOO is a bigger player. By the end of 2008, the
market capital of yahoo reduced up to 86% and remains 871.85 billion. In 2008 itself the market
capital of the company reduced about 880 billion. In this adverse time of the company Microsoft
offered yahoo 2.23 lac crore which was more than the market capital of yahoo at that time
(2008) but yahoo rejected this deal.
4- Being confused about yahoo is a tech company or a media company. A bigger amount o
yahoo’s revenue generated from the advertisements whereas software doesn’t earn much for
the company. In contrast, there was more staff in the tech department. The company was
confused whether it was a media company or a tech company. Because of this reason the
company was unable to focus on a single department.
(Make my business online is a renowned web designing company in Delhi NCR).
5- Wrong decisions for its products. In 2005 yahoo bought Flickr, before FB, Instagram and snap
chat this app was more in the discussion. Due to lacking product clarity yahoo didn’t add extra
features to it and limited it to image sharing only due to which large revenue generator app got
failed. In 2013, yahoo bought Tumblr app in $ 1 billion. As the deal finalized yahoo started giving
ads to this app which annoyed users leading to the lesser use of the Tumblr.
6- Didn’t focus on the smart technology as Google, FB did. According to ex HR of Yahoo, the focus
of the company was more on hiring the project manager and designers rather than on smart
technology. Companies like Google and FB were balanced in this part.
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