Yahoo is an American Web Services provider headquartered in Sunnyvale, California, founded by Jerry Yang and David Filo in January 1994. They were the forerunners of the internet era during the decade. It became a worldwide sensation featuring different email, news, search engine, and even financial services.
Despite their popularity during the late twentieth century, few people knew their exciting history. So to help you out there in your research, here is a list of the interesting facts about the fascinating Yahoo Incorporated.
Founded by Electrical Engineers
Other web services provider companies are established by software engineers or ITs. On the other hand, Yahoo Incorporated was founded by two electrical engineers Yang and Filo, while still studying at Stanford University in 1994.
Started as a Web Directory
Before Yahoo became the web service provider, as most people know, their site was once an organized web directory, a developed version of a searchable index of pages.
The Real Meaning of YAHOO
Now, who would have thought that the word YAHOO is actually an acronym for a really long name? The real meaning for YAHOO is “Yet Another Hierarchical Organized Oracle.” The founders were deciding back then if they can use this as their company name. Still, they noticed that it’s pretty long and difficult to remember, so they decided to give initials to it. So, there they have it, the birth of the name YAHOO was made famous to every internet user.
The First Online Directory and Search Engine Ever
Before Google came to power and dominance, and other search engines today, Yahoo is the first online directory and search engine available on the internet. It was introduced in 1995 as Yahoo Search that enables the Yahoo directory and functions as a search engine.
Free Email for Everyone
Yahoo Incorporated was one of the web service providers to give free emails to anyone. All you need is to register for a free account on their website, and you can have your free email working within a few minutes. No fees, no hidden charges, yet complete email services with a touch of your keyboard.
An Unsolicited Bid to Acquire YAHOO
In February 2008, Microsoft made offers to purchase the company for 44.6 billion US dollars. However, the shareholders and executives of Yahoo rejected the proposal claiming that the price dramatically undervalues the company. So, Microsoft increased the offer to 47 billion US dollars. However, Yahoo still declined to insist on increasing it by another ten percent before they approve. In May of that same year, Microsoft pulled out the proposal to acquire the company.
Going Blogging with Tumblr
One of Yahoo’s business strategies and ventures is the acquisition of a blogging site Tumblr. They purchased it in June 2013 for an amount of 1.1 billion US dollars in cash. David Karp, the founder, and CEO of Tumblr, kept his position to run Tumblr after being purchased by Yahoo Incorporated.
The Largest Security Breach to Date
Yahoo Incorporated disclosed a security breach report that happened in late 2014. The breach involves an astonishing 500 million Yahoo email users, the biggest security breach of all time. There were four main suspects indicted by the United States, including two employees of Federal Security Services of Russia.
A few months later, Yahoo company declared another security breach report. It states that hackers obtained sensitive account information that involves security questions of one billion account users. The total number of affected Yahoo accounts is 3 billion affected by the theft made in 2013.
Partnership with the Largest Telecommunications Company
In July 2016, Verizon Communications ventured to acquire the main Internet business of Yahoo Incorporated for an amount of 4.83 billion US dollars. However, after the data breach incidents, Verizon lowered their offer to 350 million US dollars agreeing to share the liabilities made from the recent breach incidents.
Upon completing the acquisition of Yahoo Inc by Verizon, the current CEO and President, Marissa Mayer, resigned on February 21, 2017. Today, Yahoo Inc shares are owned ninety percent by investment funds managed by Apollo Global Management. In comparison, the remaining ten percent is owned by Verizon Communications. Web services of Yahoo are still under operation as of this time.