How Yahoo Missed Out on Hundreds of Billions, Again and Again

There was a time when Yahoo was gigantic. In fact, it was the biggest Internet company in the world. In 2000 — at its peak — Yahoo was worth $125 billion. They offered services like music, videos, social media, and photo sharing. Unfortunately, Yahoo made a lot of mistakes. In 2002, Yahoo CEO Terry Semel realized the true potential of Google and offered to buy it for $3 billion. Google, however, wanted $5 billion. Yahoo made its first big mistake by refusing the counter-offer. Today, Google is worth $1.4 trillion……with a T. Yahoo’s next big mistake came when they refused to buy Facebook in 2006. Finally, in 2008, Microsoft offered to buy Yahoo for $44.6 billion. Once again, Yahoo made a decision that would the the worst thing they could have done — they rejected the offer. Fast-forward to 2016 and Yahoo agreed to sell to Verizon for a measly $4.8 billion. Yahoo’s problem was that it didn’t know what to do. It was a Jack of all trades, master of none. CEOs came and went, and the vision of the company kept changing. It tried to do everything, and ultimately couldn’t do anything. They say that skill comes to many, but vision comes to few — and Yahoo failed to get those few people. They never grasped the Technology Age concept "the world doesn’t care about you, it cares about what you can do for it."