Yahoo! Inc - Formation Of Yahoo!, Strong Brand Helps Ipo Succeed, 1996, Adds Services And Becomes A Portal, 1997-1998
As one of the early Internet search engines, Yahoo! enjoyed the benefits of being first to market as it evolved from a search engine to an Internet portal. Yahoo! became a strong Internet brand in its first year of operation. It was the first search engine to develop a commercial look and one of the first to attract online advertisers. While the company has developed alternative revenue streams, it has remained dependent on Internet advertising for the bulk of its revenue.
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Yahoo! began in 1994 as a database for finding Internet resources. The online directory of Web servers was developed by two Stanford University graduate students, Jerry Yang and David Filo, who had Master's degrees in electrical engineering. Their Web search engine was initially made available to the public on Stanford's Web site, where it was an instant hit. Unlike other search engi…
After its first year of operation Yahoo! was the best known and most widely used Internet guide. The company had attracted an additional $4 million in financial backing from Ziff-Davis Publishing Co. and Japanese software giant Softbank Corp. It generated
$500,000 in revenue in its first six months. In January 1996 Ziff-Davis and Yahoo! formed a strategic partnership whereby the magazine ZD Inter…
Yahoo!'s branding efforts resulted in 39 percent of the general public knowing the Yahoo! name, according to a Yankelovich study. To build its brand recognition Yahoo! was the first Internet-only company to advertise on television. New services launched in 1997 included Yahoo! Finance, which included investment research, market summaries, and financial news as well as links to stock quotes,…
In 1999 Yahoo! enjoyed strong revenue growth and profitability due to its global operations. Its stock joined the Standard & Poor 500 Index. Early in the year the company announced that it would acquire GeoCities, one of the largest domains on the World Wide Web, for an estimated $3.5 to $5 billion in stock. GeoCities hosted personal Web sites and sold ads on those sites. In its most recent…
Further weakness in the online advertising market affected Yahoo!'s financial performance in 2001. Several stock analysts downgraded the company's stock at the beginning of the year. After a year-long slide, Yahoo!'s stock had lost 90 percent of its value. Profits for the first quarter were down 87 percent from a year ago, and second quarter losses of $48.5 million were accomp…
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