1 Yahoo! 1995. Yahoo! Inc An American internet Corp. One of the largest website in the USA Best known for its : -web portal -Search engine -Yahoo! Mail.

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Yahoo! 1995

Yahoo! Inc

• An American internet Corp.

• One of the largest website in the USA

• Best known for its :

- web portal

- Search engine

- Yahoo! Mail

- Yahoo news

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Meet the founders

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David FILO & Jerry YANG

Electrical Engineering Graduate students from STANFORD

History

• The Yahoo!.com domain was created in 1995

• Original name « David & Jerry’s guide to the world wide web »

• Yahoo! Means: « Yet Another Hierrachical Officious Oracle »

• The exclamation point is « Pure Marketing Hype » (Jerry YANG)

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Growth 97-99

• Many acquisitions made to expand their services

• Eg : Rocketmail became Yahoo! Mail

• Classic games Yahoo! Games

• After those acquisitions, they claimed intellectual property right

• Controversial and unpopular with users of the existing services

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Yahoo!’s Growing popularity

• At fisrt, it was only accessible by its two creators

• Spread by word of mouth & email

+ : Handcrafted tool designated by people, not by computers

• A labour intensive product

Essence of yahoo UNIQUENESS

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Yahoo!’s Growing popularity

• 3 main options to explore :

- Sell Yahoo!

- Partnership with a corporate sponsor

- Start an independant business

Filo &Yang had so many funding offers :

- With Reuters, a London based media service

- ISN (internet shopping nerwork)

- Netscape Communications Corp7

Search for fundings

• Sequoia Capital, with Michael Moritz

« We are always enamored with people that seems to be on to something, even if they can’t define that something, they had a

real passion and a real spark »

Michael Moritz

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Search for fundings

• Offer: $1 million

• Management team

• 25% shares in returns

• 24 hours to accept the deal

That decision WOULD determine the future of Yahoo!

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Yahoo & Microsoft

• Merger discussions since 2005, 2006, 2007Unsuccessful

Offer rejected in 2008 as "substantially undervaluing”

On July 29, 2009, Announcement of a 10 year deal

Full access to Yahoo! Search engine

For Mic future project “Bing”

Thevery next day Yahoo! Share price more than 10% ( $15.14)

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Yahoo! Concept Statement

• The comapny goal is to remain the most popular and widely used guide to information on the internet

• A comprehensive and enjoyable guide to the internet

• Interest area based-structure

• Focus on the directory and guide

• Generate revenues from advertising and sponsorship

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The Search for Funding

• Accept Sequoia’s offer & launch Yahoo! as their own company, but giving up a significant percentage of ownership

• Accept corporate sponsorship, allowing them to get the funding & still retain 100% ownership of Yahoo!; or

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The Search for Funding

• Merge with an existing corporation in exchange of stock options

• But, they can wait for a little more time & wait for better terms with another venture capitalist firm

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The Decision

• Chose Sequoia Capital to fund their expansion with the reason “we chose Sequoia, not only because of their great reputation and track record, but also due to the support for Yahoo! by Sequoia general partner, Michael Moritz.” They were awarded with initial investment of nearly $2 million.

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The Decision

• As a reply, Michael Moritz explained that “our attraction to Yahoo! was not only the vision of the founders, but

its impressive success which happened seemingly overnight. We support David and Jerry's commitment to keeping Yahoo free for users, and expect that gradually

Yahoo will integrate some kind of sponsorship or advertising program. ”

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Yahoo’s Development

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Yahoo’s Growing Popularity

Before : Yahoo was only accessible by the 2 engineering students

Then : They created a Web Interface

Spread by Word of mouth & e-mail

Stanford Provided a sufficient bandwith

• to the Internet

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Facts

• Yahoo gained swift popularity  Just 12 months after its creation, Yang and Filo had over one million hits on their year old search engine

• The sheer volume of people using it prompted Filo and Yang to incorporate Yahoo early in 1995

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Competing Service

Large numbers of Competitors in the Internet search space business.

The uniqueness : it isn’t especially interesting to point to information that many people are known to find interesting

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Facts

• A key long-term strength is Yahoo!'s international business presence

• Yahoo! is well placed to take advantage of these opportunities with its strategic business units in Asia, Europe and Australia.

• Yahoo! has over 350 million users of its services and solutions.

• This makes it a very powerful marketing company, with a very well known brand

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Starting the business

Before long, hundreds of people were accessing their guide from well beyond the Stanford trailer.

Yang & Filo realized they wanted to start their own business

Realizing their new company had the potential to grow quickly

Workstation maxed out & overload University’s computer system

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Facts

• Word spread from friends to what quickly became a significant, loyal audience throughout the closely-knit Internet community

• Yahoo! celebrated its first million-hit day in the fall of 1994, translating to almost 100 thousand unique visitors.

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SWOT Analysis

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Strengths

• Yahoo!'s Overture is a tremendously profitable Internet advertising business. It focuses on affiliate advertising for large advertising accounts, in the same way as Google's Adsense programme. This is an important income stream for Yahoo!.

• Yahoo! has over 350 million users of its services and solutions. This makes it a very powerful marketing company, with a very well known brand.

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Strengths

• A key long-term strength is Yahoo!'s international business presence. As the Internet expands and it is adopted by more nations the opportunities for Internet brands begin to emerge.

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Weaknesses

Differentiation is difficult for Yahoo!. Almost all of its packaged services are available from other sources.

1. Search facilities are available on MSN and Google.

2. Free E-mail accounts are available from Hotmail (MSN) or G-Mail (Google), and many, many others.

3. New is available from CNN or the BBC.

4. Shopping is available everywhere on the Internet.

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Weaknesses

• Online advertising is a new income stream for organizations such as MSN, Yahoo! and Goggle. Yes, today they are very, very profitable. However, as technology develops and new unforeseen advertising media emerge, the future is uncertain for these income streams. This is a weakness for Yahoo! and its competitors.

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Opportunities

• The international market is a huge opportunity for Yahoo!. Yahoo!, Microsoft and Google are busy carving niches and taking over businesses in are around the Greater China Region. China has over 1,200,000,000 citizens. Other economies, such as India, also offer tremendous growth potential.

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Opportunities

• Mobile technologies offer another opportunity for Yahoo!. Today we access the Internet using personal computers. Tomorrow phones, televisions, personal organisers, music players and computers will merge and morph. The mobile devices of the future will need services and solutions. Yahoo! would be well placed to provide many of them

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Threats

• The biggest threat for all web-based organization is competition. Huge profits attract investors, innovators and entrepreneurs. All of Yahoo!'s key services have competitors such as AOL, Google and many others. International, culture specific competitors could affect Yahoo! in the future, unless strategic alliances are forged. China has developed its own search engines, as has India.

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THANK YOU !

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