The INSANE Reason That Yahoo! Lost Everything

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The Story of Yahoo! - The rise and fall of Yahoo is a dramatic story, but what happened to Yahoo!? How did they fail to buy Google (twice), and what caused the death of Yahoo? In this MagnatesMedia documentary, we explain the story of Yahoo, right from the beginning, with Jerry and David's guide to the world web...

The decline of Yahoo... what happened?! Why did Yahoo become so popular when the internet first began, and then why did Yahoo's popularity fall so much? Sure, Yahoo still has services people use, like Yahoo Finance and Yahoo Mail, but what went wrong?

In Act I, The Rise of Yahoo, we'll look at how Jerry and David created Yahoo from their college dorm room, and how they transformed it into a $128 billion empire (and one of the fastest growing businesses). In Act II, we'll look at Yahoo's missed opportunities to buy Facebook and Google, along with a series of catastrophic decisions that begun Yahoo's rapid decline. And finally, we'll consider Yahoo's business model, Yahoo's future, and what the next big internet empire could be.

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The INSANE Story of Yahoo!:

Yahoo could have been the most valuable company in the world.
It was once the most visited website on the internet.
They were worth $128 billion dollars.
And in the late 90’s, they had the chance to buy Google for just $1 million. Yahoo said no.
Welcome to the dramatic rise and fall of the original internet empire.

Whilst this video covers the full story of Yahoo, we also look at several mini-stories, like the time Mark Zuckerberg went to Yahoo's offices, because Yahoo was trying to acquire Facebook. The deal nearly happened, but at the last minute Yahoo! lowballed Facebook, and the deal collapsed. Just imagine if Yahoo! really had bought Facebook, Google & YouTube when they had the chance...

00:00 The Story of Yahoo: What Happened To Yahoo!?
00:28 Act I: The Rise of Yahoo!
04:57 Act II: The Fall of Yahoo!

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Created by John Frazer & Hahoany Assad.

This video (The Story of Yahoo - The Rise & Fall of Yahoo) is part of a series of mini-movies telling the stories of big businesses. In episode 1 we cover the story of WhatsApp (and how WhatsApp make money), and in episode 2 we cover the story of TikTok (and Bytedance's plans for world domination). If you want more business stories, documentaries & mini-movies, please consider subscribing to MagnatesMedia and checking out our other videos.

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MagnatesMedia
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If Yahoo! had acquired Google and Facebook, they would have strangled them just as they did with GeoCities and Tumblr.

gregvassilakos
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Yahoo comes off as one of the worst managed companies in history. They had a shitload of money and acquired hundreds of companies but failed multiple times to land a jackpot: Google, Facebook, Youtube, eBay etc despite being offered to them. It just amazes me how you can lose that many times in a row and not get a single win.

stefanwolf
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It’s so weird to hear about the downfall of Yahoo! Because my parents originally met on a Yahoo! Chatroom so I literally wouldn’t have existed had it not been for Yahoo!

Internet_Canuck
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The google search was prefered over other search engines, as they had this minimalistic start page, which loaded way faster than the competitors.

CarlMahnke
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The thing is had they bought Google they would have messed it up. There was a company called altavista which basically had the same system Google did before Google. Yahoo bought it and replaced their groundbreaking search engine with their own awful system.

archvaldor
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I worked at yahoo for 3 years (2010-2013), I was in the advertising technology team. The management was a mess, the thing about employees having to succeed or miss their target is real, and built up a lot of tension between teammates and it was messy af. It’s sad to see such a big company burned to the ground. Marissa came in and literally finished it, by spending most of the money by buying smaller companies/startups (like tumbler) than never saw the light after that. What a disgrace.

Goofer
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Marissa Meyer was the real beginning of the end for Yahoo. Her weird management edicts, like requiring everyone to report on the best, and worst employees on a scheduled basis, created a horrible working environment. She also refused to hire anyone without an advanced university degree, which really made no sense in the internet universe. I remember that time, and some of the ex-Yahooers descriptions. Turning down the $44 billion from Microsoft, the ultimate missed opportunity. Truly awful mismanagement, ending up with the worst possible choice, Marissa.

SynthoidSounds
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You missed out In December 2016, Yahoo disclosed that hackers had stolen data from 1 billion Yahoo users in August 2013, and had also forged cookies that would allow an intruder to access user accounts without supplying a valid password in 2015 and 2016. This had a huge impact on their decline.

TenableVegan
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Yahoo was leading the Internet but the downfall was because they focused more on money rather than their user

MNKShorts
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Yahoo was a mess, when you entered the website around 2010 it was hard to tell wtf you were seeing, was a search engine? A mail service? A news site? It was so confusing to use any of their services while google had everything so organised

da
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I'm surprised Yahoo said "no" to Google.
Even back in 1997, it was already clear that Google was the superior search engine.
Though admittedly, some classmates of mine back in around 2004 couldn't tell which was better.

noiJadisCailleach
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I remember using Yahoo search - the screen looked like a circus midway - all sorts of distracting popups, adverts, - very distracting/annoying when you just want to work and do your search - Google, on the other hand, kept their main screen simple and minimalist - didn't get in the way, let you get on with your work..decision on which to use was simple.

DLWELD
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Omg Yahoo's management or director's really didn't have a clue. I can't believe the amount of lifelines they were offered and turned them down. The Microsoft turndown really was a terrible idea

marcusphoenixish
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Just to show how badly it is for Yahoo, I've been with them for a solid 22 years now. My email has always been a Ymail or Yahoo address. They were apparently acquired by AT&T and now I cannot get into my email. When I sign it it takes me to an ATT email client and I am not a member, so my email with Yahoo is forever lost.

jtmichaelson
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This is what happens to companies with no clear vision and direction. This is a good lesson for startups.

macua
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Yahoo’s comment section on every article was the best on the internet…so they shut it down before the last Presidential election to prevent people from making counterpoints to their politically biased news stories. My traffic to Yahoo went to zero, and here I am making dopey comments on YouTube instead.

stevenw
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No doubt, that during the decline, all of those failing CEOs received huge bonuses.

beckyzwhite
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The reason I ditched Yahoo was their annoying practice of trying to cover my browser with toolbars.

mitch
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My experience with 40yrs experience in the tech industry is that tech managers were failed upwards. I have had so many new managers get a job, fire all the original people and bring their own friends and family in. They also scrap the previous tech implemented and redo the tech as well. Then they leave and the company/ department fails. Then a new manager and the whole cycle starts again.

SifiFan