Financial Focus: Yahoo-ed!

Anthony RivieccioFrom a high flying internet company to death by restructuring

By Anthony Rivieccio, MBA, PFA

 

So, what was Yahoo, originally?

In January 1994, it began as Jerry and David’s guide to the World Wide Web.

Jerry Yang and David Filo were graduate students when they created a website they named “Jerry and David’s guide to the World Wide Web.” The site was a directory of other websites. In March 1994, “Jerry and David’s Guide to the World Wide Web” was renamed “Yahoo!” The “yahoo.com” domain was created on January 18, 1995.

For over 20 years now, it was and still is known, as a website, email and internet search business. It was the first to deliver FREE email to the masses and even today, when looking for things on the internet, our instincts today, because of Yahoo, tells us to go to the search button first.

Once these consumer platforms took hold, they went to create “content platforms” for news, entertainment, finance and sports. By 2002, our computer was fully “Yahoo geared” to perform searches and receive email.

And then came the mobile phone! And Google made it smarter.

By 2003, Google convinced Yahoo, to subcontract them to do its searches. By 2006, Google became the first free email company to provide unlimited storage. Yahoo, at first, did not respond. Google responded, by creating Android, now the operating system on over 40% of global phones.

We wanted the same Yahoo based functionality on the phone, for search and email.  And for the last 10 years, we now have a simple way for this access- hello Google!.

In the last year, Yahoo stock has fallen 36% as consumers and advertisers look for new ways to perform searches, check email and look at advertising on the phone.

Since 2008, when Yahoo peaked, they decided to invest in more non core assets, like more hiring and real estate offices instead of investing in research and development of mobile.

Yahoo knew in December when CEO Mellissa Myers said Yahoo should start to look at selling some of its non core assets.

Which is why it was announced this week that Yahoo will sell several pieces of its real estate holdings around the world, including Japan. Yahoo also announced that it was cutting another 15% of its workforce.

While advertising revenue for the internet, by industry, continues to go up 15% per year, it is sad to see an old friend like Yahoo slowly die.

But I guess as I write this on my new Android phone, a closer look shows me the real death of Yahoo. My phone, in short, has been Google-ized!.

The Internet High Flyer of the 1990s has been reduced to internet rubble as consumers have quickly changed their data consumption, from the desktop computer to the smartphone.

So goodbye Yahoo, it was nice knowing you. Thank you for (at that time) helping to make the internet to easier and fun to use.  One last time.  Yahoooooooo!

Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating their 20th year as a fee only financial planning firm specializing in solving one’s financial problems. Anthony, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet Channel 67 TV, The Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News and The Bronx Chronicle.

For financial inquiries, assistance or a FREE COPY of a 2015 Income Tax Guide, Anthony can be reached at (347) 575-5045 or advisorsgroup@ymail.com.

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