Its official that Yahoo will soon be a subsidiary of Verizon, America’s biggest telecom giant after reaching a $4.83 billion settlement in cash for the multinational technology company’s core Internet business.
By Cisco Eng. Shingie Lev Muringi
However, despite how gloomy the deal with Verizon might appear to you, Yahoo has made quite a number of very regrettable decisions since 1998 up to 2008. In these past 18years, if the right business decisions had been executed, Yahoo could have been the world’s biggest monopoly in the Internet technology markets.
Yahoo’s worst ever business decision came in 1998 when the leading technological company at that time refused to buy Google for only $1million dollars. This was a clear lack of business foresight as Google surged past Yahoo in the early years of the millennium to be the largest multi-technology company and email traffic carrier up to date.
Yahoo, seemingly was a logical buyer to Page and Brin the young founders of the Google search engine because Yahoo at that time relied on directories edited by people and didn’t have a fast way to scour the entire Internet. However a business decision overridden by marketing myopia saw Yahoo turning down the chance to buy or license the Google technology.
In part, Yahoo rejected it because the firm wanted computer users to spend more time on Yahoo. The Google search engine was designed to give people fast answers to their questions by swiftly sending them to the most relevant Web site. The Yahoo directories were designed both to answer questions and to keep people on the Yahoo site, where they could shop, view ads, check their email, play games, and spend more money and time, rather than less.
After realizing their biggest mistake in 2002, Yahoo would then proceed to bid $3Billion to buy Google. At that time, Google’s stock was on the rise and they demanded $5Billion but Yahoo went on to make another regrettable error by denying to pay the demanded price by Google. That was Yahoo’s only chance of becoming an untouchable market leader in the Internet technology industry but they blew it off.
The battle for relevance would go for another six years to come which saw Google overtaking Yahoo by a very wider margin, coupled by very groundbreaking inventions in communication technologies and robotics.
Yahoo after failing to be the conquerors, the ailing entity failed to recognize another fortune which knocked once on their doors by rejecting a $40Billion takeover from Microsoft. Microsoft at that time had risen to become the biggest Operating Systems service provider in the computer systems market and they were destined to become the demigods of the industry. If Yahoo had accepted the unbelievable figures, the American company could have found shelter and comfort in the arms of one of the best technological giants up to date.
In business, all we learn is to make the right decisions so as to safeguard the future but Yahoo’s directors never saw the signs. Exactly eight years down the line after rejecting a $40Billion bid from Microsoft, Yahoo would then succumb to defeat in the recent weeks and accepted a total stake takeover from Verizon for a mere $4.6Billion which negatively rewarded them with a heartbreaking $35,4Billion loss which could have been a historic gain for them if they had accepted a deal from Microsoft eight years earlier.
The road for Yahoo has no been gloomy for those who pulled the strings behind the scenes. The art of innovation even got the better of them and they failed to keep up with the current pacesetters Google whom they had an opportunity to clip down their ambitious wings under their total control and could have benefited from new ideas.
The battle for relevance continues…follow Shingie Levison Muringi our Technology Research Specialist and Sub Editor on Twitter @ShingieMuringi1, Email [email protected] or direct Cell: 0775 380 652 for all the latest trending technological issues in and outside Zimbabwe.