Not a Yahoo! moment

This blog was originally posted on Awesummly. Awesummly is a news app available on Play Store. To download the app, click here.

It is said that Internet is an unforgiving place for yesterday’s great idea. Acquisition of Yahoo! Inc.’s core business by Verizon Communication on 25 July for $4.83 billion validates this fact. Verizon is America’s top ranking telecommunication company, which has started to experience a radical increase in digital content consumption from its mobile users. Hence, Verizon’s acquisition of Yahoo is clear as the latter had emerged as an unavoidable, but struggling, player in the field of content distribution. Last year, Verizon had acquired AOL Inc.(Yahoo’s biggest competitor for a long time) for $4.4 billion. Surprisingly, because of Verizon’s increasing customer base in the area of digital consumption, its biggest competitors now are Facebook and Google, the big brothers in providing content, and not AT&T or Sprint, big names in America’s telecommunication sphere.

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Verizon’s growing empire (source: Bloomberg)

Yahoo has reached its end as an independent company which was founded in 1994 by Stanford graduates David Felo and Jerry Yang. One of the biggest names during its heydays in the nascent world of dot-com, Yahoo was the front door to Internet for many first-generation users. At its peak in 2000, it was valued at $125 billion, having evolved through numerous products such as Yahoo Mail, Yahoo Messenger, Yahoo Answers, Yahoo Finance and many more. By mid-2000s, Yahoo struggled to maintain its spot, courtesy- beginning of era of Google and Facebook. For every Yahoo Search, there was a Google Search; for Yahoo Messenger, there was a Google Talk. Arguably, every Yahoo Mail user started to have a taste of Gmail, and the competition just got increasingly tough for Yahoo.

Just like many companies, Yahoo made goof-ups, but it had to pay a massive price for some of them, as it turns out to be in recent times. A shocking incident as it may come out to be, Yahoo had missed opportunities to acquire both Google and Facebook. Apparently, Yahoo was not willing to spend even $1 million to buy Google! Again in 2008, Microsoft offered a deal of $44 billion which was rejected by Yahoo.

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No more Yahoo!

Flash-forward to the present scene. No doubt, Yahoo has lost its charm. After this acquisition, Yahoo will have stakes remaining in the Chinese e-commerce company Alibaba (estimated at $40 billion), Yahoo Japan and other small portfolio of high-end patents. Marissa Mayer, CEO of Yahoo, who had a long stint at Google, will be paid a severance package of $57 million. Notably, she was hired in 2012 to revive Yahoo but failed to do so. After all these years of pressure for Yahoo and its ultimate acquisition, one thing on which we all can agree is: Yahoo! came to its logical end.

This blog was originally posted on Awesummly. Awesummly is a news app available on Play Store. To download the app, click here.

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