Yahoo, a name that once dominated the internet world, is a fascinating study in the rise, fall, and evolution of a tech giant. From its humble beginnings as a directory of websites to its current status as a subsidiary of Verizon Communications, Yahoo’s journey is a testament to the rapid and unpredictable nature of the digital age. In this article, we delve into the background of Yahoo, its founders, its revenue streams, and more, offering a comprehensive look at this iconic internet company.

Yahoo’s Background

Yahoo was born in 1994, at a time when the internet was still in its infancy. It started as “Jerry and David’s Guide to the World Wide Web,” a directory of websites categorized by topic. The founders, Jerry Yang and David Filo, were Stanford University graduate students who wanted to keep track of their personal interests on the internet. The site quickly gained popularity, and in 1995, it was renamed Yahoo, an acronym for “Yet Another Hierarchical Officious Oracle.”

The Founders: Jerry Yang and David Filo

Jerry Yang and David Filo, both electrical engineering graduate students at Stanford University, co-founded Yahoo. Yang, born in Taiwan, moved to the United States at the age of ten. Filo, a native of Louisiana, was known for his quiet demeanor and technical prowess. Their complementary skills and shared vision laid the foundation for Yahoo’s initial success.

Yahoo’s Revenue Streams

Yahoo’s primary revenue source has always been advertising. In its early years, Yahoo capitalized on its high traffic by selling banner ads. As the internet evolved, so did Yahoo’s advertising model, shifting towards targeted ads based on user data. Yahoo also generated revenue through premium services like Yahoo Mail Plus and Yahoo Business Email. After its acquisition by Verizon, Yahoo became part of Verizon Media, contributing to its revenue through its media and news platforms.

Yahoo’s Peak and Decline

Yahoo reached its peak in the late 1990s and early 2000s, becoming one of the most visited websites globally. However, the company failed to maintain its momentum in the face of rising competition from Google and Facebook. Strategic missteps, such as declining to buy Google in 2002 and failing to acquire Facebook in 2006, contributed to Yahoo’s decline. The company also struggled with a series of CEO changes and layoffs.

Yahoo’s Acquisition by Verizon

In 2016, Verizon Communications acquired Yahoo for $4.83 billion, merging it with AOL to form a new subsidiary called Oath, later rebranded as Verizon Media. The acquisition marked the end of Yahoo as an independent company. Today, Yahoo operates as part of Verizon Media, offering a range of services including email, news, search, and more.

Yahoo Today

Despite its challenges, Yahoo remains a significant player in the digital world. Its email service, Yahoo Mail, is one of the most popular globally, and its news and finance platforms attract millions of visitors. Yahoo’s story serves as a reminder of the internet’s transformative power and the importance of adaptability in the face of rapid technological change.

In conclusion, Yahoo’s journey from a simple web directory to a global internet company is a compelling narrative of innovation, missed opportunities, and resilience. Its story offers valuable insights for anyone interested in the evolution of the internet and the dynamics of the tech industry.


Alex likes to write about anything related to technology, marketing and gadgets. He sometimes reviews the latest tech and also writes on other blogs.