We return presented a cruel reality in the realm of internet business. Who is still stuck in a comfort zone and stick with outdated ideas, ready to be crushed and wait to die.
There are many examples that we can see in the last decade. Who does not know Friendster in his time? Within a short time, a social media pioneer who had been so popular Facebook forgotten when the heartbeat is present.
However we now are talking about Friendster. Now we are talking only about Yahoo are gasping when the era was taken over by Google. And once, Yahoo had a chance to continue to be the king of kings on the internet if Google successfully acquired while still cheap.
So, now where the position of Yahoo? Had valued USD 125 billion in 2000, now only be sold at a low price for the Internet pioneer company of this caliber, only USD 4.83 billion.
The lesson to be learned in the current era, technology companies come and go. Even the status of Internet giant today was no guarantee as to what their fate in the future.
It is also believed by Google. That is why they deliberately displaying a replica of the T-Rex in the front yard office. Google does not want their fate only remembered as ‘the strongest dinosaur’ is now a distant memory just history.
Stories Yahoo began decades ago, precisely in 1994, Jerry Yang, a Taiwanese immigrant who had just graduated from Stanford duet with David Filo, a quiet programmer from Louisiana. They create a kind of directory website called David’s Guide to the World Wide Web.
Directory of Internet users is preferred. The following year, Sequoia Capital inject capital for the company which was renamed so Yahoo, then appointed former Motorola executive, Tim Kogle, as CEO. Jerry Yang and David Filo itself is still much involved.
Time that Yahoo prevail unchallenged. In 1998, Yahoo is the most popular website and has gone public alias to sell shares in the stock. In January 2000, Yahoo’s stock price reached a peak of USD 118.
But then, there was what is referred to as the dotcom bubble in which many internet companies collapsed. Yahoo’s stock price in 2001 even dropped to $ 8.
Luckily, Yahoo can survive in these difficult times. The reins of leadership change with the appointment of Terry Semel, the former Warner Brothers executive, as CEO replacing Kogle.
At this time, Yahoo missed a great chance for sure they are very regretted. Reported by Economic Times, Yahoo in 2002 could buy Google. However, due to less persistent, the acquisition never happened.
Then in 2006, nearly Yahoo buying Facebook. But Semel lower bids of USD 1 billion to USD 850 million. Mark Zuckerberg actually is less intent on selling Facebook finally really steady Yahoo rejected the offer.
As is known, Google and Facebook became devouring giant Yahoo’s business. Both companies can not be denied is one reason why Yahoo slumped at a later date.
Of course not all of Yahoo’s strategy failed. In 2005, Jerry Yang arranged the purchase of 40% stake in e-commerce companies from China, Alibaba, valued at USD 1 billion.
A risky purchase, but then a huge success since evolved into giant Alibaba e-commerce in China. Currently, shares of Yahoo in Alibaba was worth about USD 80 billion, far greater than the value of Yahoo’s own.
Time passed. In 2008, Yahoo started to show signs of deterioration. Microsoft came to give a bid worth USD 44.6 billion. But rejected by Jerry Yang, who was CEO of Yahoo, because it considers the offer too low.
The rejection was proven wrong policy, and again tipped regret, because the value of Yahoo continues to decline. Three years after Microsoft’s bid, Yahoo’s market capitalization of only USD 22.24 billion.
That is, Yahoo was never able to rise like a golden age in advance even though they had bergonta CEO. Their market capitalization plummeted more, layoffs must be done and operational offices in various countries including Indonesia are closed.