Yahoo has been trying a lot to overtake a lot of small companies. But its attempt has seen a lot of losses. So, here we are with a list of Yahoo’s failed acquisition:
Geocities – Yahoo purchased Geocities, a web hosting service, for an exorbitant amount of $4 billion – During the tech bubble Yahoo made ostentatious display for Geocities. Yahoo destroyed it after 10 years without doing much with it.
Broadcast.com – An internet radio company was brought by Yahoo at $5.7 billion. It fragmented the services into Yahoo! Launchcast, for audio and Yahoo! Platinum for video. Recently it was found that broadcast.yahoo.com is not a distinct web address anymore.
Kelkoo – Yahoo acquired Kelkoo, a Paris based price comparison website, for $579 Million in April 2004. Three years later, Kelkoo lost its impulse. A year later, Yahoo sold it to Jamplant, a private equity firm for $126 million. Huge loss!!
HotJobs – Yahoo took over HotJobs, online job searching site which provided job seekers tools and advice in their job search, for $439 million in 2002. Initially it executed very well until it faced cutthroat start ups. In 2010, Yahoo traded HotJobs to Monster for $225 million. Monetary failure yet again.
Overture – Yahoo provided ‘pay per click’ and ‘sponsored search’ services after it acquired the search engine company Overture for $1.63 billion in 2003. It was a proposal to fight with Google in the search engine business. It was a failure overall.
Zimbra – Software creator Zimbra was obtained for $350 million. Visualization software business VirtualMachineWARE fetched Zimbra from Yahoo in 2010 for an undisclosed amount.
Flickr – A very famous image & video hosting site and was taken in by Yahoo in March 2005 for $35 Million. In 2008 its co-founders left the company. Years later other eminent employers also resigned.
Del.icio.us – This was acquired by Yahoo in December 2005 for $15-20 Mn. It was a social bookmarking site which appeared to go sluggish and showed no signs of up-gradation. As a result, traffic plunged. Now del.icio.us is sold to AVOS Systems.
Failed attempts of acquisition
The following are the top companies which were in talks to be in Yahoo’s hand. But, due to some circumstances the deal didn’t go well and they parted away.
- Google – Yahoo had the occasion to procure Google for $1 Mn in 1999. At that time, this price was too high in comparison for its market value. Google denied the deal and it is now worth $250 Bn. Had it been in the hands of Yahoo, we could not have seen the innovation that is being exhibited by Google. Thanks to Larry and Sergey! Indeed a wise decision.
- Facebook – Facebook could have been purchased by Yahoo in 2006 for $1.4 bn. Due to undecided stock prices, yahoo lowered its offer to $850 Mn. CEO Zukerberg quietly walked away from this contract. Facebook’s net worth has increased more than double after its first Initial public Offering (IPO). Its total assets is now more than $15 Bn.
So, What this trend implies is- Whoever has gone into yahoo’s shelter has lost its vision and failed.