The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Ravi Shankar, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur
On January 9, 2017, Yahoo completed its deal with Verizon Communications Ltd. for $4.8 Billion thus completing complete acquisition of the remaining share of Yahoo by Verizon. It has also decided that once the deal of acquisition is completed, Yahoo is going to be renamed as Altaba Inc. with reference to its majority shareholder company Alibaba. This set of events have not only ended Yahoo’s 22 years of being independent company but also illustrate beginning of new era for many internet users who have been loyal to Yahoo for very long.
The script for the acquisition was written when Yahoo had to shut down many of its products like Yahoo games, Yahoo Livetext etc. back in March, 2016 declaring decline in revenue earned by Yahoo. Revelation of almost 500 million account hacking in Yahoo in December, 2016 compounded the situation further. But contemplating the fact that the situation has reached to such a level that the company would have to go for the deal, even with 1 billion active users, still comes hard for many millennials who started using internet in the era dominated by Yahoo.
Millennials who started using computers and internet in early parts of 21st Century can very easily correlate themselves to Google and Yahoo. These names itself symbolized as internet for any new users who had started using internet in those time. While Google evolved itself continuously to match the rapid pace of technological development, Yahoo was not able to make any substantial evolution as against its conventional competitors and new disrupters. Further dent to its reputation was made by account hacking claims of its 500 million users. Intense competition and its failure to continuously progress with new wave of technological changes passing it by has finally led to downfall of a massive empire created by once the king of Internet world Yahoo.
Being a millennial, who started using internet when Yahoo was at its prime, this comes as a sad news. Yahoo has been a part of our day to day internet usage for so long that it has become synonyms of many of our internet activities. Yahoo, signifies for most of us, as evolution of internet to what it is today. Yahoo is a symbol of the dot-com boom which changed the world forever. With new player already investing heavily in the Internet market, it had become a race of survival for Yahoo and eventually it lost the battle and even though the deal for acquisition is still in very early phase, this set of events does signify an end of an era for many internet users.