Yahoo! Inc
Hoover's Company Profiles:
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Yahoo! Inc.
(NASDAQ:YHOO)
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701 1st Ave. Sunnyvale, CA 94089 CA Tel. 408-349-3300 Fax 408-349-3301 |
Type: Public
On the web:
http://www.yahoo.com
Employees:
14,100
Employee growth: 3.7%
Yahoo! wants to spread some cheer to Internet users around the world. Its network of websites offers news, entertainment, and shopping, as well as search results powered by Microsoft's Bing. Yahoo! generates most of its revenue through providing search and display advertising to Web operations in three categories: Communications & Communities (including Yahoo! Mail, Yahoo! Groups, and Flickr), Search and Marketplaces (Yahoo! Search), and Media (Yahoo! Homepage, Yahoo! Finance). Other revenues come from fee-based services such as premium e-mail; royalties, licenses, and mobile products; and broadband Internet access. Yahoo! publishes content in about 45 languages and in 60 countries, regions, and territories.
Key numbers for fiscal year ending December, 2011:
Sales: $4,984.2M
One year growth: (21.2%)
Net income: $1,048.8M
Income growth: (14.8%)
Officers:
Chairman: Alfred J. (Fred) Amoroso
Interim CEO, EVP, and Head Global Media: Ross B. Levinsohn
CFO: Timothy R. (Tim) Morse
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Yahoo! Inc
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(Yahoo! Inc., Sunnyvale, CA,
It Began with Search
When it launched in 1995, Yahoo! was the first Web search site to gain worldwide attention. It distinguished itself in the early days because it created its indexes manually. Instead of sending out automated spiders that roamed the Web and indexed everything in sight, indexing specialists decided what categories a Web page fit in. As a result, Yahoo! called itself a "directory," rather than just a search engine. Today, Yahoo! also uses spiders because the Web has grown too large to handle entirely by hand.
A Student Hobby
In 1994, Stanford Ph.D candidates Jerry Yang and David Filo began indexing interesting Web sites as a hobby. "Jerry and David's Guide to the World Wide Web" turned into Yahoo!, meaning "Yet Another Hierarchical Officious Oracle!" A very successful IPO followed in 1996, and within a few years, Yahoo! became a major global brand with offices around the world. See Yahoo! Store and Web search engines.
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Gale Directory of Company Histories:
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Yahoo! Inc.
Incorporated: 1995
Yahoo! Inc. is one of the world's leading Internet media companies. Using its seemingly neverending compilation of links to other Web sites, as well as its extensive searchable database, the company helps Internet users navigate the World Wide Web. Anyone can access the Yahoo! Web site for free because it is funded not by subscriptions but by the advertisers who pay to promote products and services there. Yahoo! leads its competitors in the amount of user traffic at its site, with over 2.4 billion page views viewed through its 25 international sites in 13 languages each day. The company also offers Internet users other peripheral services, such as free e-mail accounts (Yahoo! Mail), online chat areas (Yahoo! Chat), and news tailored to each user's demographic or geographic area (Yahoo! News). The company's principal shareholders are the FMR Corporation with 12.5 percent of the stock, cofounder David Filo with 7.9 percent, cofounder Jerry Yang (6.7 percent), and CEO Terry S. Semel (1.2 percent). Yahoo! stock sold at around $35 a share during 2004.
Yahoo! Inc. got its start in 1994 as the hobby of two Stanford University students who were writing their doctoral dissertations. Jerry Yang and David Filo, both of whom were candidates in Stanford's electrical engineering doctoral program, spent much of their free time surfing the World Wide Web and cataloging their favorite Web sites. In doing so, they created a Web site of their own that linked Internet users to Yang's and Filo's favorite places in cyberspace. At that time, their site was called "Jerry's Guide to the World Wide Web."
As their Web site grew, both in size and in the number of links from which it was composed, the number of people who used the site also increased dramatically. Thus, Yang and Filo began spending more and more time on their new hobby, gradually converting the homemade list into a customized database that users could search to locate Web sites related to specific interests. The database itself was originally located on Yang's Stanford student computer workstation, named "akebono," while the search engine was located on Filo's computer, "konishiki" (the two computers were named after legendary Hawaiian sumo wrestlers).
As for the transformation of the database's name from "Jerry's Guide to the World Wide Web" to "Yahoo!," the two men became bored with the original tag and set about to change it late one night while bumming around in their trailer on the Stanford campus. Looking to mimic the phrase/acronym "Yet Another Compiler Compiler" (YACC), a favorite among Unix aficionados, Yang and Filo came up with "Yet Another Hierarchical Officious Oracle" (YAHOO). Browsing through the online edition of Webster's dictionary around midnight, they decided that the general definition of a yahoo--rude and uncouth--was fitting. Yang was known for his foul language, and Filo was described as being blunt. The two considered themselves to be a couple of major yahoos, and thus the name which would soon become a household brand was born.
It was not long before the Yahoo! database became too large to remain on the Stanford University computer system. In early 1995, Marc Andreessen, co-founder of Netscape Communications, invited Yang and Filo to move Yahoo! to the larger computer system housed at Netscape. Stanford benefited greatly from this move due to the fact that its computer system finally returned to normal after having been inundated by Yahoo!'s activity.
Commercialization soon followed. Yang and Filo began selling advertisement space on their site in order to fund further growth. The duo soon realized that it was going to be too difficult to manage both the creative and the administrative aspects of the Yahoo! enterprise. They recruited Tim Koogle, also a former Stanford student, to come aboard as CEO. Prior to his arrival at Yahoo!, Koogle had put himself through engineering school by rebuilding engines and restoring cars and had then gone on to work at Motorola and InterMec Corporation.
One of Koogle's first moves as the company's CEO was to bring in Jeff Mallett as COO. Mallett was a former member of the Canadian men's national soccer team who, at age 22, began running the sales, marketing, and business development aspects of his parents' telecommunications company, Island Pacific Telephone, in Vancouver. Prior to joining the Yahoo! gang, he also gained experience in marketing at Reference Software and WordPerfect and acted as vice-president and general manager of Novell Inc.'s consumer division. Together, Koogle and Mallett began transforming Yahoo! from a homegrown list of interesting Web sites into the most popular stop along the information highway.
Koogle and Mallett soon became known as "the parents" at Yahoo!'s corporate headquarters. While Yang and Filo would arrive at work wearing T-shirts and sneakers, Koogle and Mallett preferred Italian silk ties. Many viewed the foursome's working relationship as that of kids with ideas and the adults that they found to put these ideas into practice. In the August 6, 1998, edition of the San Francisco Chronicle, analyst Andrea Williams of Volpe Brown Whelan & Co. referred to Koogle and Mallett as "Yahoo's equivalent of the Wizard of Oz, pulling the strings from behind the scenes. ... Americans are captivated by the idea of two college kids like Yang and Filo starting an incredible service. But [Mallett] and [Koogle] have turned it into a business that advertisers and investors understand and respect."
The majority of Yahoo!'s revenue came through banner advertising deals. In basic terms, Yahoo! sold space on its Web pages to companies wishing to promote their products to the demographic that frequented the Yahoo! site. The purchased space not only acted as a visual advertisement, as in a magazine, but often served as a link to the advertiser's own Web site as well. Thus, a simple click on a banner ad by an Internet user could immediately transport that user to the advertiser's Web site. In this sense, banner ads were somewhat superior to other forms of advertisement in that no other purveyor of advertising (television, radio, magazines) had ever led consumers to a company quite so immediately.
As another means of generating revenue, Yahoo! struck up distribution deals with Web sites that were looking to increase their own traffic. For example, Yahoo!, while not itself an online retailer, boasted a lot of user traffic at its site. An online retailer, however, might have goods or services to sell but a need to first increase traffic at its own site in order to sell those goods. A distribution deal would pair the two sites, with Yahoo! leading its customer traffic to the retailer's site in exchange for a cut of the transaction revenues whenever customers made purchases. In this sense, Yahoo!, along with competitors such as Excite, Infoseek, and Lycos, came to be known as a "portal"--a gateway to the rest of the Internet.
Through banner advertising and distribution deals, Yahoo! was able to continue offering its services to Web surfers for free, as opposed to online services such as America Online (AOL), Prodigy, and Microsoft Network. The latter three charged monthly fees for the use of their offerings. Although these online service companies' offerings were often more graphically intricate and visually pleasing than the Yahoo! site, they were essentially providing the same thing as Yahoo! while at the same time charging for the service. According to Jonathan Littman in the July 20, 1998 edition of Upside Today, "Yahoo, much like Amazon.com, built a natural Internet brand through its simple desire to satisfy customers." It was not long before Yahoo!'s user base was comparable to that of industry giant AOL, even though its 1995 revenues topped off at only around $1 million.
In 1996, Yahoo! went public, offering shares of its stock for $13. In the first day of trading alone, the company's stock price sailed to $43, and its estimated valuation was quoted at upwards of $300 million, more than 15 times its eventual 1996 revenues of approximately $20 million. Around that time, Yahoo! decided to start promoting itself in through advertising. Another former Stanford graduate, Karen Edwards, was brought aboard as the Yahoo! "brand marketer," and she immediately lined up ad agency Black Rocket of San Francisco to handle Yahoo!'s account. Black Rocket was composed of four independent advertising executives who, ironically, owned no computers.
That spring, Yahoo! used almost its entire advertising budget for 1996 to run its first national-scale ad campaign on television. Luckily, the ad was an immediate hit. In the television spot, a fisherman used Yahoo! to obtain some baiting tips, then proceeded to land a number of gigantic fish. According to Jonathan Littman in a July 20, 1998 edition of Upside Today, "The faux testimonial captured the Net's spirit without being the least bit techie." From this campaign arose the company tagline "Do you Yahoo!?" Yahoo! executives hoped that the efforts would help their operation to blossom into a full-fledged media company.
The quest to turn the Yahoo! name into a major brand took a few wacky turns along the way. For example, Edwards decided that the Yahoo! name simply needed to be out in the public eye as much as possible, regardless of the manner in which it appeared. Yahoo! posters began appearing at many outdoor locations, such as sporting events, concerts, and even construction sites. The Yahoo! logo was placed everywhere, with one of the most notable places being a tattoo on the rear-end of a Yahoo!'s financial pages' senior producer, when he made good on a lost bet. It was also plastered on the side of the San Jose Sharks' Zamboni ice machine and printed onto items such as Ben & Jerry's ice cream containers and VISA cards. The yellow and purple Yahoo! logo even appeared shrink-wrapped onto five Yahoo! employees' cars, and one spring Edwards planted her flower garden at home in yellow gladioli and purple petunias.
As Yahoo! became a certifiable household brand name, the company began striving to further satisfy the needs of its users. Following the trend set by online service companies such as AOL, Yahoo! added services and features such as chat areas, Yellow Pages, online shopping, and news. The company also added a feature called "My Yahoo!," which was a personalized front page for regular users that displayed information tailored to each user's interests. The company also teamed up with Visa to create an Internet shopping mall (an idea that was later aborted), with publisher Ziff-Davis to create "Yahoo! Internet Life" (an online and print magazine which never came to fruition), and with Netscape to develop a topic-based Internet navigation service to be used with the Netscape Communicator browser software.
By 1997, Internet surfers were using Yahoo! to view approximately 65 million pages of electronic data each day. That year, Yahoo! acquired online White Pages provider Four11 for $95 million. The purchase gave Yahoo! access to Four11's e-mail capabilities, which when integrated into Yahoo!'s offerings allowed the company to provide its users with free e-mail (Yahoo! Mail). By mid-1998, over 40 million people were logging on to Yahoo! each month, 12 million of whom had become registered Yahoo! e-mail users. To put those numbers into perspective, one can consider that at that time, only 30 million people were tuning in to network-leader NBC's top-rated show ER each week, and the number of Yahoo! e-mail users was comparable to that of online service giant AOL.
In July 1998, Yahoo! received a $250 million investment from Japan's Softbank Corporation, increasing Softbank's share of the company to approximately 31 percent. Yahoo!'s market valuation at that time was $6.9 billion, which was much higher than that of most other media companies. As an emerging media company, Yahoo! began to move into the Internet access market that year through the launch of Yahoo! Online. To do so, the company initially formed a partnership with MCI WorldCom, but the arrangement deteriorated later that year. Subsequently, Yahoo! crafted a deal with communications giant AT&T to provide Internet access through AT&T's WorldNet service.
Also in 1998, Yahoo! replaced Digital Equipment's Alta Vista with California-based search engine specialist Inktomi as the supplier of Yahoo!'s search engine. Yahoo! then purchased Viaweb, a producer of Internet software programs. The acquisition resulted in the posting of a one-time $44 million charge in 1998. Yahoo! planned to use Viaweb's software to start a new service, which would allow its users to set up their own Web sites for the purpose of buying and selling goods online.
In October 1998, Yahoo! purchased Yoyodyne Entertainment for 280,664 shares of Yahoo! common stock. Yoyodyne added its permission-based direct marketing capabilities to Yahoo!, which also obtained the company's database of consumers, valuable demographic information, and other Yoyodyne assets. Prior to the acquisition, much of Yoyodyne's direct marketing was done through online games and sweepstakes at Internet sites such as EZSpree.com, GetRichClick.com, EZVenture.com, and EZWheels.com. Yahoo! announced that while those four sites would remain intact after the integration of Yoyodyne into Yahoo!, the former company's overall brand would be phased out.
By the end of the year, Yahoo!'s user traffic had increased considerably since 1997, with Web surfers viewing approximately 95 million pages of information through Yahoo! each day, a huge increase from the previous year's average.
By the end of the 20th century, the computer industry, and the Internet industry in particular, was becoming increasingly inundated with new players. In July 1998, NBC had purchased a 19 percent interest in Snap!, another portal operated by CNET Inc. Disney followed suit by grabbing a 43 percent stake in Infoseek Corporation. At Home Corporation purchased Excite, Inc., and Microsoft Corporation increased promotion of its MSN portal. Even America Online made moves to increase its scope through the acquisition of Netscape and its Netcenter portal. Nobody wanted to be left out of the Internet game, since many analysts predicted that it would be the next true media industry.
Yahoo! tried to maintain its large share of the market by continuing to focus on its users and their satisfaction. Recognizing that it would only take one click of a computer mouse for a Yahoo! user to defect to one of its competitors, the company began to provide its users with even more features and services. In January 1999, Yahoo! announced the purchase of GeoCities, the third most-visited Web site in December 1998 (directly behind top-rated AOL.com) and second-rated Yahoo.com. The GeoCities site was a creator of electronic communities for people. Based on people's interests, GeoCities allowed its users to set up their own personal home pages. Yahoo! hoped that the acquisition of GeoCities would bring many of that site's users to Yahoo!, and vice versa.
The new century saw a dramatic rise in both sales and profits for Yahoo! In 2001 the company had sales of $717 million; in 2002, $953 million; in 2003, $1.6 billion; and in 2004, $3.5 billion, a one-year increase of 120 percent. This period began with a loss of $92.8 million in 2001. In 2002, however, the company posted a net income of $42.8 million. This rose in 2003 to $237.9 million and to a healthy $839.6 million net income in 2004. Such phenomenal growth was fueled by a number of factors, including steady acquisitions of other Internet companies. During the years 2000 to 2004, Yahoo! acquired thirteen companies: Arthas.com, eGroups, Kimo, Sold.com, Launch Media, HotJobs, Inktomi, Overture Services, Beijing 3721 Technology Co. Ltd., FareChase, OddPost Inc., MusicMatch, and Kelkoo. Web traffic increases have also played a part. As of March 2004, the Yahoo! network of properties received some 2.4 billion page views per day.
A flurry of new joint ventures also promised continuing growth for Yahoo! In November 2001, the company teamed with SBC Communications to offer co-branded DSL and Dial services. This partnership was reaffirmed in November 2004 when the two companies agreed to a multi-year extension of their venture. They planned to move beyond products offered only on a home computer to products for home television and audio systems, Cingular wireless phones, SBC FreedomLink Wi-Fi, and SBC Home Networking equipment. Yahoo! CEO Terry Semel explained: "The new services that will be developed out of this expanded relationship represent the next step in Yahoo!'s strategy to further deepen consumer relationships by extending our products and services beyond the desktop. SBC and Yahoo! are putting consumers in the driver's seat, delivering what they want--when, how and where they want it." In December 2004, the company teamed with Nextel Communications Inc. to offer a group of Yahoo! products and services, including e-mail, instant messaging, games, and news content, on Nextel handheld devices. The venture combined Yahoo!'s wireless messaging capabilities with Nextel's nationwide network. In January 2005, the company signed a deal with Verizon Communications Inc. to offer Verizon's broadband customers a new Verizon Yahoo! portal. "We are very excited to team up with Verizon, the largest communications company in the U.S., as their partner of choice, in order to provide Verizon's subscribers with a compelling new Verizon Yahoo! offering," said Dan Rosensweig, Yahoo!'s chief operating officer. With such ambitious plans for the future, growth projections for Yahoo! remained optimistic.
Principal Subsidiaries
HotJobs.com, Ltd.; Kelkoo S.A.; Musicmatch, Inc.; Overture Services, Inc.; Yahoo! Europe; Yahoo! Japan.
Principal Competitors
America Online, Inc.; About Inc.; Google Inc.; Microsoft Corporation.
Further Reading
Alden, Christopher J., "Kingmaker," Red Herring, August 1998.
Angel, Karen, Inside Yahoo!: Reinvention and the Road Ahead, New York: Wiley, 2002.
Delaney, Kevin J., "Forging Yahoo's Future; CEO Terry Semel Revitalized Web Portal, but Rival Google Could Complicate 'Phase Two,'" Wall Street Journal, June 24, 2004, p. B1.
Delaney, Kevin J., and Dennis K. Berman, "A Big Buy for Yahoo Isn't Likely; Company to Focus Spending Spree on Expanding Global Presence and Increasing Its User Base," Wall Street Journal, December 15, 2004, p. C1.
Gumbel, Andrew, "The Cyberpunks," Independent, March 24, 1999, p. BR5.
Hansell, Saul, "Yahoo to Acquire GeoCities," New York Times, January 28, 1999.
Himelstein, Linda, et. al., "Yahoo!: The Company, the Strategy, the Stock," Business Week, September 7, 1998.
Mittner, Greta, "Yahoo Plays Yoyodyne's Game," Red Herring Online, October 13, 1998.
Napoli, Lisa, "Yoyodyne Deal Signals Next Stage of Marketing," New York Times, October 14, 1998.
"SBC, Yahoo! Extend Pact," Grand Rapids Press, November 19, 2004, p. C3.
Schlender, Brent, "How a Virtuoso Plays the Web: Eclectic, Inquisitive, and Academic, Yahoo's Jerry Yang Reinvents the Role of the Entrepreneur," Fortune, March 6, 2000, p. F79.
Swartz, Jon, "Yahoo's Other Dynamic Duo," San Francisco Chronicle, August 6, 1998, p. D3.
"Winning on the Web," Success, February, 1996, p. 27.
"Yahoo! to Strengthen Investment in China," Alestron, January 31, 2005.
— Laura E. Whiteley; Updated by Thomas Wiloch
Barron's Business Dictionary:
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Yahoo! Inc
A popular search engine for the world wide web, accessible at http://www.yahoo.com. Yahoo also offers other Internet services, such as e - mail.
| Y.k. (Yugen-Kaisha), X or Xd, Wysiwyp | |
| Yankee Bond Market, Yard, Year-End |
Wikipedia on Answers.com:
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Yahoo!
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It has been suggested that Yahoo! Green be merged into this article or section. (Discuss) Proposed since January 2012. |
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This article may require copy editing for grammar, style, cohesion, tone, or spelling. You can assist by editing it. (September 2011) |
This article is about the corporation. For the search engine, see Yahoo! Search. For other uses, see Yahoo (disambiguation).
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| Type | Public |
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| Traded as | NASDAQ: YHOO NASDAQ-100 Component S&P 500 Component |
| Industry | Internet |
| Founded | Santa Clara, California, U.S. (March 1, 1995) |
| Founder(s) | Jerry Yang, David Filo |
| Headquarters | Sunnyvale, California, U.S. |
| Area served | Worldwide |
| Key people | Fred Amoroso (Chairman) Ross Levinsohn (Interim CEO) |
| Products | See Yahoo! products |
| Revenue |  US$ 4.98 billion (2011)[1] |
| Operating income |  US$ 800 million (2011)[1] |
| Net income | US$ 1.04 billion (2011)[1] |
| Total assets | US$ 14.78 billion (2011)[1] |
| Total equity | US$ 12.53 billion (2011)[1] |
| Employees | 12,000 (May 2012)[2] |
| Subsidiaries | Yahoo! subsidiaries |
| Website | Yahoo.com |
Yahoo! Inc. (NASDAQ: YHOO) is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine (Yahoo! Search), Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping, video sharing, fantasy sports and social media website and services. It is one of the largest websites in the United States.[3]
Yahoo! Inc. was founded by Jerry Yang and David Filo in January 1994 and was incorporated on March 1, 1995. On January 13, 2009, Yahoo! appointed Carol Bartz, former executive chairman of Autodesk, as its new chief executive officer and a member of the board of directors.[4] On September 6, 2011, Bartz was removed from her position at Yahoo! by chairman Roy Bostock and CFO Tim Morse was named as Interim CEO of the company.[5][6] On January 4, 2012, Scott Thompson, former President of PayPal, was named the new chief executive officer.[7] On May 13, 2012, Scott Thompson was replaced by Ross Levinsohn as the company's interim CEO.[8]
According to news sources roughly 700 million people visit Yahoo websites every month.[9][10] Yahoo! itself claims it attracts "more than half a billion consumers every month in more than 30 languages".[11]
History and growth
Main article: History of Yahoo!
See also: Timeline of Yahoo!
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In January 1994, Jerry Yang and David Filo were electrical engineering graduate students at Stanford University when they created a website named "Jerry's guide to the world wide web".[12] David and Jerry's Guide to the World Wide Web was a directory of other websites, organized in a hierarchy, as opposed to a searchable index of pages. In April 1994, "David and Jerry's Guide to the World Wide Web" was renamed "Yahoo!".[13][14] The "yahoo.com" domain was created on January 18, 1995.[15]
The word "yahoo" is an acronym for "Yet Another Hierarchical Officious Oracle."[16] The term "hierarchical" described how the Yahoo! database was arranged in directory layers. The term "oracle" was intended to mean "source of truth and wisdom," and "officious", rather than being related in any way to the meaning of the word, described the many office workers who would use the Yahoo! database while surfing from work.[17] 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." Filo's college girlfriend often referred to Filo as a "yahoo." This meaning derives from the name of a race of fictional beings from Gulliver's Travels.
Yahoo! grew rapidly throughout the 1990s. Like many search engines and web directories, Yahoo! diversified into a web portal. It also made many high-profile acquisitions. Its stock price skyrocketed during the dot-com bubble, Yahoo! stocks closing at an all-time high of $118.75 a share on January 3, 2000. However, after the dot-com bubble burst, it settled at a post-bubble low of $4.05 on September 26, 2001.
In 2000, Yahoo! began using Google for search results. Over the next four years, it developed its own search technologies, which it began using in 2004. Yahoo! also revamped its mail service to compete with Google's Gmail in 2007. The company struggled through 2008, with several large layoffs.
In February 2008, Microsoft Corporation made an unsolicited bid to acquire Yahoo! for USD $44.6 billion. Yahoo! subsequently formally rejected the bid, claiming that it "substantially undervalues" Yahoo! and was not in the interest of its shareholders. Three years later, Yahoo! had a stock market capitalization of USD $22.24 billion.[18] Carol Bartz replaced cofounder Jerry Yang in January 2009.[19] In September 2011 she was removed from her position at Yahoo! by the company's chairman Roy Bostock, and CFO Tim Morse was named as Interim CEO of the company.
In early 2012, after the appointment of Scott Thompson as the new CEO, many rumors spread about large layoffs looming. Several key executives, such as Chief Product Officer Blake Irving left Yahoo!.[20] On April 4, 2012 Yahoo announced a cut of 2,000 jobs or about 14 percent of 14,100 workers employed by Yahoo. The cut is expected to save around $375 million annually after the layoffs are completed at end of 2012.[21]
In an email memo sent to employees in April 2012, Scott Thompson re-iterated his view that customers should come first at Yahoo. He also completely re-organized the company. [22]
On May 13, 2012, Yahoo issued a press release stating that Thompson was no longer with the company, and would immediately be replaced on an interim basis by Ross Levinsohn, recently appointed head of Yahoo's new Media group. [23] [24] [25] Thompson's total compensation for his 130-day tenure with Yahoo will be at least $7.3 million.[26]
Products and services
Main article: List of Yahoo!-owned sites and services
Yahoo! operates the web portal which provides content including the latest news, entertainment, and sports information. The portal also gives users access to other Yahoo! services like Yahoo! Mail, Yahoo! Maps, Yahoo! Finance, Yahoo! Groups and Yahoo! Messenger.
Storing personal information and tracking usage
Working with comScore, The New York Times found that Yahoo! is able to collect far more data about webusers than its competitors from its websites and advertising network. By one measure, on average Yahoo! had the potential in December 2007 to build a profile of 2,500 records per month about each of its visitors.[27]
As of May 22, 2008, an article in Computerworld states that Yahoo has a 2-petabyte, specially built data warehouse, which it uses to analyze the behavior of its half-billion Web visitors per month, processing 24 billion events a day.[28] In contrast the Internal Revenue Services (IRS) database of all US taxpayers weighs in at only 150 TB.[28]
As of December 18, 2008, Yahoo! retains search requests for a period of 13 months. However, In response to European Regulators, Yahoo scrambles the IP address of users after three months by deleting its last eight bits.[29]
Communication
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Yahoo! provides Internet communication services such as Yahoo! Messenger and Yahoo! Mail. In March 2007, Yahoo! announced that their e-mail service would offer unlimited storage beginning May 2007.[30]
Yahoo! also offers social networking services and user-generated content in products such as My Web, Yahoo! Personals, Yahoo! 360°, Delicious, Flickr and Yahoo! Buzz. In December 2010, reports emerged that Yahoo! would be shutting down Yahoo! Buzz, MyBlogLog and a handful of other products.[31]
Yahoo! Photos was shut down on September 20, 2007, in favor of Flickr. On October 16, 2007, Yahoo! announced that they would no longer provide support or perform bug fixes on Yahoo! 360° as they intended to abandon it in early 2008 in favor of a "universal profile" that will be similar to their Mash experimental system. [32][dead link]
Content
Yahoo! partners with numerous content providers in products such as Yahoo! Sports, Yahoo! Finance, Yahoo! Music, Yahoo! Movies, Yahoo! News, Yahoo! Answers and Yahoo! Games to provide media content and news. Yahoo! also provides a personalization service, My Yahoo!, which enables users to combine their favorite Yahoo! features, content feeds and information onto a single page.
On March 31, 2008, Yahoo! launched Shine, a site tailored for women seeking online information and advice between the ages of 25 and 54.[33]
Co-branded Internet services
Yahoo! has developed partnerships with different broadband providers such as AT&T (via BellSouth & SBC), Verizon Communications, Rogers Communications and British Telecom, offering a range of free and premium Yahoo! content and services to subscribers.[specify][vague][citation needed]
Mobile Services
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Yahoo! Mobile offers services for email, instant messaging, and mobile blogging, as well as information services, searches and alerts. Services for the camera phone include entertainment, ring tones, and Yahoo! Photos.
Yahoo! also introduced its Internet search system, called oneSearch, developed for mobile phones on March 20, 2007. The company's officials stated that in distinction from ordinary Web searches, Yahoo!'s new service presents a list of actual information, which may include news headlines, images from Yahoo!'s Flickr photos site, business listings, local weather, and links to other sites. Instead of showing only, for example, popular movies or some critical reviews, oneSearch lists local theaters that at the moment are playing a certain movie, along with user ratings and news headlines regarding the movie. A zip code or city name is required for Yahoo! oneSearch to start delivering local search results.
The results of a Web search are listed on a single page and are prioritized into categories. The list of results is based on calculations that Yahoo! computers make on certain information the user is seeking.[34]
Yahoo! uses Novarra's mobile content transcoding service for the oneSearch platform.[35][dead link]
On October 8, 2010, Yahoo! announced plans to brings video chat to iPhones and Android-based phones via its popular Yahoo Messenger instant messaging service.[36]
Commerce
Yahoo! offers commerce services such as Yahoo! Shopping, Yahoo! Autos, Yahoo! Real Estate and Yahoo! Travel, which enables users to gather relevant information and make commercial transactions and purchases online. Yahoo! Auctions were discontinued in 2007 except for Asia.[37]
Small business
Yahoo! provides services such as Yahoo! Domains, Yahoo! Web Hosting, Yahoo! Merchant Solutions, Yahoo! Business Email and Yahoo! Store to small business owners and professionals allowing them to build their own online stores using Yahoo!'s tools.[citation needed]
On 24 May, 2012, Yahoo launched Axis search browser. The browser is currently available for Apple mobile devices and on desktops.[38]
Advertising
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Yahoo! Search Marketing provides services such as Sponsored Search, Local Advertising, and Product/Travel/Directory Submit that let different businesses advertise their products and services on the Yahoo! network.
Yahoo! Publisher Network is an advertising tool for online publishers to place advertisements relevant to their content to monetize their websites.[39]
Yahoo! launched its new Internet advertisement sales system on February 5, 2007, called Panama. It allows advertisers to bid for search terms based on their popularity to display their ads on search results pages. The system takes bids, ad quality, clickthrough rates and other factors into consideration in determining how ads are ranked on search results pages. Through Panama, Yahoo! aims to provide more relevant search results to users, a better overall experience, as well as increase monetization—to earn more from the ads it shows.[40]
On April 7, 2008, Yahoo! announced APT from Yahoo!, which was originally called AMP! from Yahoo!,[41] an online advertising management platform.[42] The platform seeks to simplify advertising sales by unifying buyer and seller markets. The service was launched in September 2008. [43][dead link]
In September 2011, Yahoo formed an ad selling strategic partnership with 2 of its top competitors, AOL and Microsoft.[44]
Yahoo! Next
Yahoo! Next is an incubation ground for future Yahoo! technologies currently in their beta-testing phase. It contains forums for Yahoo! users to give feedback to assist in the development of these future Yahoo! technologies. It was created by Jerry Page and David Shin.[45]
Yahoo! BOSS
Yahoo! Search BOSS is a service that allows developers to build search applications based on Yahoo!'s search technology.[46] Early Partners in the program include Hakia, Me.dium, Delver, Daylife and Yebol.[47] On October 8, 2010, The Yahoo Search Blog announced BOSS is switching, as expected, to a paid model. They will charge on a cost-per-query model where the price will vary from $0.40 to $0.75 CPM (cost per 1000 BOSS queries). The price, as Yahoo explained, will depend on if you are querying web, image, news or other information. Yahoo said they plan on offering BOSS v1, the free version, for free 60 days after BOSS v2, the paid version, is launched – which is expected in early 2011.[48]
Yahoo! Meme
Yahoo! Meme is a beta social service, similar to the popular social networking sites Twitter and Jaiku.
Yahoo! Koprol
Yahoo! Koprol is an Indonesian social networking site based on location without the use of any GPS devices. Koprol was bought by Yahoo in May 2011 with 75,000 users. Koprol has accrued 1.5 million users as of early July 2011 at one year old.[49]
Y!Connect
Y!Connect is a feature that enables individuals to leave comments in online publication boards by using their Yahoo ID, instead of having to register with each individual publication. The Wall Street Journal reported that Yahoo plans to mimic this strategy used by rival Facebook Inc. to help drive traffic to its site.[50]
Yahoo! Accessibility
Yahoo has invested resources to increase and improve access to the internet for the disabled community through the Yahoo Accessibility Lab.[51]
Closed down services
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Geocities was a popular web hosting service founded in 1994. At one point it was the third-most-browsed site on the World Wide Web.[52] Yahoo! purchased Geocities in 1999, and ten years later, the web host was closed,[53] deleting millions of web pages in the process. A great deal of information was lost but many of those sites and pages have been mirrored at the Internet Archive,[54] "OOcities.com", and other such databases.[55]
Yahoo! Go, a Java-based phone application with access to most of Yahoo! services, was closed down on January 12, 2010.[56]
Yahoo! 360° was a blogging/social networking beta service launched in March 2005 by Yahoo! and closed on July 13, 2009.[57] Yahoo! Mash beta was another social service closed after one year of operation prior to leaving beta status.[58]
Yahoo! Photos was shut down on September 20, 2007, in favor of integration with Flickr. Yahoo! Tech was a website that provided product information and setup advice to users. Yahoo! launched the website in May 2006. On March 11, 2010, Yahoo! closed down the service and redirected users to Yahoo!'s technology news section.[59] Other discontinued services include Farechase, My Web, Audio Search, Pets, Live, Kickstart, Briefcase, and Yahoo! for Teachers.[60]
Hotjobs was acquired by and merged with Monster.com.
Twitter slide leak on upcoming changes to Yahoo
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On December 15, 2010, one day after Yahoo announced layoffs of 4% of its workers across their portfolio, MyBlogLog founder Eric Marcoullier posted a slide from a Yahoo employee on Twitter. The slide was visible during an employee-only strategy webcast indicating changes in Yahoo's offerings.[61]
The following services were in a column under "Sunset": Yahoo Picks, AltaVista, MyM, AlltheWeb, Yahoo Bookmarks, Yahoo! Buzz, del.icio.us, and MyBlogLog. Under "Merge" was: Upcoming, FoxyTunes, Yahoo Events, Yahoo People Search, Sideline, and FireEagle.
11 other properties were listed that Yahoo was interested in developing into feature sites within the portal to take the place of the "Sunset" and "Merge" vacancies, including the prior feature services (before the New Yahoo Mail was launched), were Yahoo Address Book, Calendar, and Notepad.[62] Yahoo's Chief Product Officer and Executive Vice President Blake Irving unofficially responded to the tweet implying that whoever sent him that particular slide is fired.[citation needed]
The blog on del.icio.us released a post by Chris Yeh after the leak, detailing that "Sunset" in their case doesn't necessarily mean they are closing down, and that other possibilities – including Delicious leaving Yahoo (through sale or spinoff) – are still on the table and that Delicious will not be closing down at this time; "We can only imagine how upsetting the news coverage over the past 24 hours has been to many of you. Speaking for our team, we were very disappointed by the way that this appeared in the press." [63][dead link] On April 27, 2011, an announcement said that Delicious has been sold to Avos by Yahoo!.[64]
Yahoo! Buzz was closed down on April 21, 2011 with no official announcement by Yahoo!.[65]
Yahoo! announced it will close down MyBlogLog on May 24, 2011.[66]
Privacy
On March 29, 2012, Yahoo! announced that it will introduce a Do Not Track feature this summer. [67]
Revenue model
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About 88% of total revenues for the fiscal year 2009 came from marketing services. [68][dead link] The largest segment of it comes from search advertising, where advertisers bid for search terms to display their ads on the search results, on average Yahoo! makes 2.5 cents to 3 cents from each search. With the search advertising system "Panama" Yahoo! aims to increase revenue generated from search. [69][dead link]
Other forms of advertising, which brings in revenue for Yahoo! include display and contextual advertising.[citation needed]
Criticism
Main article: Criticism of Yahoo!
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In 2000, Yahoo! was taken to court in France by parties seeking to prevent French citizens from purchasing memorabilia relating to the Nazi Party.[70] In March 2004, Yahoo! launched a paid inclusion program whereby commercial websites are guaranteed listings on the Yahoo! search engine,[71] but Yahoo! discontinued the paid inclusion / search submit program at the end of 2009.[72] Yahoo! has also been criticized for providing ads via the Yahoo! ad network to companies who display them through spyware and adware.[73][74]
Yahoo! as well as other search engines, have cooperated with the Chinese government in censoring search results. In April 2005, dissident Shi Tao was sentenced to 10 years in prison for "providing state secrets to foreign entities"[75] as a result of being identified by IP address by Yahoo![76] The extent of Yahoo's foreknowledge of Shi's fate is disputed by Yahoo! General Counsel and human rights organizations.[77] Human rights groups also accuse Yahoo! of aiding authorities in the arrest of dissidents Li Zhi and Jiang Lijun. In September 2003, dissident Wang Xiaoning was convicted of charges of "incitement to subvert state power" and sentenced to ten years in prison. Yahoo! helped authorities to identify posts he had made in a Yahoo! group calling for an end to single-party rule. [78][dead link] Both Xiaoning's wife and the World Organization for Human Rights[79] sued Yahoo! under human rights laws on behalf of Wang and Shi.[80]
As a result of media scrutiny relating to Internet child predators and a lack of significant ad revenues, Yahoo!'s "user created" chatrooms were closed down in June 2005.[81] On May 25, 2006, Yahoo!'s image search was criticized for bringing up sexually explicit images even when SafeSearch was on.[82] Yahoo! is a 40% owner of Alibaba Group, which was previously a subject of controversy for allowing the sale of shark-derived products. Nevertheless, the company banned the sale of shark fin products on all its e-commerce platforms in January 1, 2009. On November 30, 2009, Yahoo! was criticized by the Electronic Frontier Foundation for sending a DMCA notice to whistle-blower website "Cryptome" for publicly posting details, prices, and procedures[83] on obtaining private information pertaining to Yahoo!'s subscribers.[84]
After some concerns over censorship of private emails regarding a website affiliated with Occupy Wall Street protests were raised,[85][86] Yahoo! responded with an apology and explained it as an accident.[87]
Yahoo subject of cyber attacks originating in China
Adobe and Yahoo appear to have been among the targets of cyber attacks originating in China now known as Operation Aurora.[88]
Financial data
| Year | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|---|---|---|
| Sales | 1,625 | 3,574 | 5,258 | 6,426 | 6,969 | 7,208 | 6,460 | 6,324 |
| EBITDA | 453 | 1,000 | 1,505 | 1,066 | ||||
| Net Results | 238 | 840 | 1,896 | 751 | 660 | 424 | 597 | 1,231 |
| Staff | 5,500 | 7,600 | 9,800 | 11,400 | 13,900 | 13,200 |
Advertising Revenue
As of January, 2010, Yahoo held the world's largest market share in online display advertising. JP Morgan put the company’s US market share for display ads at 17%, well ahead of No. 2 Microsoft at 11% and AOL at 7%.[90]
Board of directors
Board of Directors (current)
- Alfred Amoroso (2012) – Chairman, Yahoo! Inc.
- John D Hayes (2012) – Executive Vice President and Chief Marketing Officer, American Express Company – Executive Vice President and Chief Marketing Officer, American Express Company and former President of Lowe & Partners
- Sue James Retired Partner, Ernst & Young LLP
- David Kenny (2011)
- Peter Liguori (2012) Former Chief Operating Officer, Discovery Communications, Inc. and former Chairman and President of Entertainment, Fox Broadcasting Company
- Daniel S. Loeb (2012)
- Thomas J McInerney (2012) – Former Executive Vice President and Chief Financial Officer, IAC/InterActiveCorp
- Brad D. Smith President and Chief Executive Officer, Intuit Inc.
- Maynard Webb, Jr. (2012) – Founder, Webb Investment Network and chairman and former CEO of LiveOps
- Harry J. Wilson (2012)
- Michael J. Wolf (2012)
Board of Directors (past)
- Roy Bostock past Chairman, Yahoo! Inc.
- Patti Hart President and Chief Executive Officer, International Game Technology
- Vyomesh Joshi Executive Vice President, Imaging and Printing Group, Hewlett-Packard Company
- Arthur Kern Private Investor
- Scott Thompson Yahoo! CEO
- Gary L. Wilson (2001) Private Investor General Partner, Manhattan Pacific Partners, was the chairman of the board of Northwest Airlines, chief financial officer of Walt Disney Company, and chief financial officer of Marriott Corporation.[95]
Yahoo! International
Yahoo! is known across the world with its multi-lingual interface. The site is available in over 20 languages, including English. The official directory for all of the Yahoo! International sites is world.yahoo.com.
Each of the international sites are wholly owned by Yahoo!, with the exception of Yahoo! Japan, in which it holds a 34.75% minority SoftBank holds 35.45%,[97] Yahoo!Xtra in New Zealand which Yahoo!7 have 51% of and 49% belongs to Telecom New Zealand and Yahoo!7 in Australia which is a 50–50 agreement between Yahoo! and the Seven Network. Historically, Yahoo! entered into joint venture agreements with SoftBank for the major European sites (UK, France, Germany) and well as Korea and Japan. In November 2005, Yahoo! purchased the minority interests that SoftBank owned in Europe and Korea.
Yahoo! used to hold a 40% stake in Alibaba, which manages a web portal in China using the Yahoo! brand name. Yahoo! in the USA does not have direct control over the operations of Alibaba, which operates as a completely independent company. On May 21st 2012, following years of negotiations, Alibaba announced that it would buy back half the 40% stake owned by Yahoo. The deal would raise about $7.1bn (£4.5bn) for Yahoo, which has been losing ground to rival Google and Facebook in online advertising.
In 2008, Darren Petterson, business development director for Yahoo! Europe confirmed that Yahoo! was going to launch a Romanian version of their website by the end of the year,[98][99] however, due to the financial crisis at that time, those plans were frozen.[100] In February 2010, new reports appeared in the Romanian media claiming that the portal will finally launch by June the same year, as some services like Yahoo! Mail and Yahoo! Mobile are already translated into Romanian.[101][102] On March 8, 2011 Yahoo! launched its Romania local service.
Yahoo!'s EMEA operations are led by Senior Vice President & Managing Director of Yahoo! EMEA, Rich Riley.
Logos and themes
The first logo was used when the company was founded in 1995. It was red and had three icons on each side.[103]
The logo used on the main page www.yahoo.com used to be red with a black outline and shadow, but in May 2009, along with a new theme redesign, the logo was changed to purple with no outline or shadow.
Sometimes, the logo is abbreviated with "Y!".[104]
Themes and page designs are different on some international Yahoo! home pages, such as Yahoo! Australia,[105] and Yahoo! India,[106] etc.
See also
Notes and references
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- ^ http://allthingsd.com/20120305/yahoos-new-ceo-preps-major-restructuring-including-significant-layoffs
- ^ Staff (2012). "yahoo.com". Quantcast - It's your audience. We just find it.. Quantcast Corporation. http://www.quantcast.com/search?q=yahoo. Retrieved 23 May 2012.
- ^ Rob Hof (2009). "Confirmed: Carol Bartz Named Yahoo CEO: Can She Turn It Around?". Business Week. http://www.businessweek.com/the_thread/techbeat/archives/2009/01/carol_bartz_to.html. Retrieved January 14, 2009.
- ^ . http://allthingsd.com/20110906/exclusive-carol-bartz-out-at-yahoo-cfo-interim-ceo/.
- ^ "Yahoo fires CEO after tumultuous tenure". The Sydney Morning Herald. September 7, 2011. http://www.smh.com.au/business/world-business/yahoo-fires-ceo-after-tumultuous-tenure-20110907-1jwmu.html. Retrieved September 7, 2011.
- ^ "Scott Thompson Named New Yahoo CEO". Huffington Post. January 4, 2012. http://www.huffingtonpost.com/2012/01/04/scott-thompson-named-new-yahoo-ceo_n_1183133.html. Retrieved January 16, 2012.
- ^ "Scott Thompson". http://www.bbc.co.uk/news/business-18053577. Retrieved 2012-05-21.
- ^ "Most Popular E-mail Newsletter". USA Today. November 7, 2011. http://www.usatoday.com/tech/news/story/2011-11-07/yahoo-strategy/51115612/1.
- ^ "Canada Pension Plan mulls Yahoo buy, report says". CBC News. October 20, 2011. http://www.cbc.ca/news/technology/story/2011/10/20/cppib-yahoo-microsoft.html.
- ^ http://www.linkedin.com/company/yahoo
- ^ Andrew Clark (1 February 2008). [Jerry and David's Guide to the World Wide Web "How Jerry's guide to the world wide web became Yahoo"]. The Guardian. Jerry and David's Guide to the World Wide Web. Retrieved 23 May 2012.
- ^ David G. Thomson (2006). Blueprint to a Billion. Wiley-Interscience. p. 155. ISBN 978-0-471-77918-6.
- ^ Ethan Trex. "Jerry and David's Guide to the World Wide Web becomes Yahoo!". Blogs.static.mentalfloss.com. http://blogs.static.mentalfloss.com/blogs/archives/22707.html. Retrieved August 24, 2010.
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- ^ http://allthingsd.com/20120405/exclusive-yahoos-chief-product-officer-blake-irving-resigns/
- ^ "Yahoo dumping 2,000 workers in latest purge". April 4, 2012. http://www.thejakartapost.com/news/2012/04/04/yahoo-dumping-2000-workers-latest-purge.html.
- ^ http://allthingsd.com/20120410/its-official-yahoo-reorgs-itself-just-like-we-said-memo-time/
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- ^ http://allthingsd.com/20120410/its-official-yahoo-reorgs-itself-just-like-we-said-memo-time/
- ^ http://www.reuters.com/article/2012/05/11/ag-yahoo-ceo-idUSL1E8GAN4W20120511
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- ^ http://allthingsd.com/20110914/all-for-one-yahoo-aol-microsoft-band-together-for-ad-plan/
- ^ http://labs.yahoo.com/
- ^ Schonfeld, Erick (August 4, 2008). "Yahoo Boss Is So Open, It Runs on Google's App Engine". The Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2008/08/04/AR2008080400733.html. Retrieved May 31, 2011.
- ^ "Yahoo! Expands Its Open Strategy With BOSS". http://newsbreaks.infotoday.com/nbReader.asp?ArticleId=49963.
- ^ "New Yahoo app to challenge Apple FaceTime on iPhone". Reuters. October 7, 2010. http://blogs.reuters.com/mediafile/2010/10/07/new-yahoo-app-to-challenge-apple-facetime-on-iphone/. Retrieved December 8, 2010.
- ^ Wartaekonomi.co.ik
- ^ Efrati, Amir (October 17, 2010). "Yahoo to Offer Media Links". The Wall Street Journal. http://online.wsj.com/article/SB10001424052702304250404575558442735374452.html. Retrieved December 8, 2010.
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- ^ Twitter post of original slide
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- ^ "Yahoo Pitch to Advertisers: We Sell Ginormous Ads". Mediamemo.allthingsd.com. January 11, 2010. http://mediamemo.allthingsd.com/20100111/yahoos-pitch-to-advertisers-we-sell-ginormous-ads/?mod=ATD_sphere. Retrieved May 31, 2011.
- ^ http://investor.yahoo.net/directors.cfm
- ^ http://biz.yahoo.com/e/120326/yhoo8-k.html
- ^ http://www.forbes.com/sites/ericjackson/2011/09/12/roy-bostocks-tarnished-legacy-at-yahoo/
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- ^ "Darren Petterson promises an important increase in Yahoo!, in Romania" (in Romanian). May 30, 2008. http://www.wall-street.ro/articol/Marketing-PR/42795/Darren-Petterson-promite-o-crestere-considerabila-a-Yahoo-in-Romania.html. Retrieved February 13, 2010.
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- ^ "Yahoo! Romania will launch in June 2010" (in Romanian). Smash.ro. November 2, 2010. http://www.smash.ro/punctro/yahoo-romania-se-lanseaza-in-iulie-2010/. Retrieved February 13, 2010.
- ^ "Mediacafe: "Yahoo.ro won't revolutionise the market, and neither will it gross three times more money"". Money.ro. December 2, 2010. http://www.money.ro/new-media/mediacafe-yahoo-ro-nu-va-revolutiona-piata-si-nici-nu-ne-va-aduce-de-trei-ori-mai-multi-bani.html. Retrieved February 13, 2010.
- ^ "Yahoo Logo Design, Logo Design History". Logoorange.com. http://www.logoorange.com/logodesign-Y.php. Retrieved May 31, 2011.
- ^ Staff (2012). "Y - Yahoo". allacronyms.com. All Acronyms. http://www.all-acronyms.com/cat/7/Y/Yahoo/1183359. Retrieved 23 May 2012.
- ^ Staff (2012). "yahoo.com.au". Yahoo!7. Yahoo!7 Pty Limited. http://au.yahoo.com/. Retrieved 23 May 2012.
- ^ In.yahoo.com
External links
- Official website (Mobile)
- Corporate milestones
- The History of Yahoo! – How It All Started ...
- Earliest known Yahoo! website from 1996
- Yahoo! investor press releases
- Yahoo Press Room
- Yahoo! on Twitter
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