Yes Yahoo strikes again! But have they learnt from past mistakes? Or is Tumblr going to be the next Internet business to receive yahoo’s kiss of death! Yahoo buying up Internet businesses I’m talking about and let’s be honest here, they haven’t made a very good job of it in the past, in fact one could be forgiven for wondering if the ex Yahoo management now hold positions in any of the big city banks.? Many an up & coming young business has suffered a slow & lingering death after Yahoo has taken the reigns. Just read below for some of the screw ups Yahoo is notorious for & then place a small wager on Tumblr’s future.
Yahoo’s Past Big Buys Tell a Tale of Mediocrity and Failure
Broadcast.com (1999)—In one of the frothiest moments of the first dot-com bubble, Yahoo bought a financially unsuccessful internet radio startup for a reported $5.7 billion in stock and made Mark Cuban very rich. The service was rebranded Launchcast and has cycled through multiple corporate partners as better ideas – from the first Napster to Spotify – have made the very idea of “broadcasting” on the internet obsolete.
Geocities (1999)—When the first great ’90s nostalgia movie hits, we’ll undoubtedly meet the protagonist as he rocks out to Pearl Jam while creating some sweet tiled backgrounds and table-based layouts on his GeoCities page. It’s hard to fault Yahoo for swapping $3.6 billion in stock for what at the time was one of the web’s most trafficked sites. It’s easier to blame the company for allowing GeoCities to sputter in dot-com limbo before shuttering the U.S. version a decade later.
Overture Services (2003)—Yahoo’s purchase of Overture for more than $1.6 billion stands as its largest acquisition not directly aimed at consumers. The Google AdWords competitor was quickly rebranded as a Yahoo property and continues to serve up a high volume of internet advertising. But Yahoo has struggled to get those ads to generate as much revenue per ad as Google’s, and has faced the wrath of advertisers over changes to the service.
Right Media (2007)—To bulk up in its battle against Google, Yahoo spent $680 million to complete its acquisition of ad auction service Right Media. The purchase helped fill out Yahoo’s Panama ad platform but hasn’t helped Yahoo close the gap in the company’s perpetual race to catch up to its dominant competitor.
Kelkoo (2004)—Yahoo bought European price-comparison site Kelkoo in 2004 for nearly $600 million. In 2008, Yahoo reportedly unloaded the sputtering service for about one-quarter of what it paid.
Hotjobs.com (2002)—Yahoo battled online job search rival Monster Worldwide to acquire HotJobs for $436 million. Less than a decade later, Monster took HotJobs off Yahoo’s fumbling hands for $225 million.
eGroups (2000)—In one of the few bright spots in Yahoo’s history of acquisitions, its $432 million purchase of eGroups helped build the foundation of the incredibly popular Yahoo Groups. But popularity has never been Yahoo’s main problem. Converting that popularity into profit is where the company has always foundered, and its priority if the Tumblr acquisition is to avoid a GeoCities repeat.
Original Source Via – Marcus Wohlsen / Wired
And then of course we also have MyBlogLog yet another social network that was rocketing to a successful place on the Internet, until Yahoo coughed up $10,000,000 & of course the kiss of death!
Yahoo Acquires MyBlogLog for $10 Million
Bradley Horowitz, VP of product strategy at Yahoo, said that MyBlogLog would remain a separate entity (much like their other social acquisitions)
MyBlogLog was originally developed by Cloudspace— an Orlando, Florida web applications development shop. It was acquired in January, 2007 by Yahoo for slightly more than $10 million and with over 45,000 blogs subscribed at the time. In 2008, MyBlogLog averaged approximately 22 million visits to pages with MyBlogLog widgets each day, and the site had over 275,000 registered members.
On February 24, 2011 Yahoo announced the MyBlogLog service would be terminated on May 24, 2011.
Original Source Via – Wikipedia
But although Yahoo’s past record is shameful, there are signs of change.