History of Yahoo

When Jerry and David's Guide to the World Wide Web was renamed to Yahoo! in 1994, Yang and Filo said that "Yet Another Hierarchical Officious Oracle" was a suitable backronym for this name, but they insisted they had selected the name because they liked the word's general definition, as in Gulliver's Travels by Jonathan Swift: "rude, unsophisticated, uncouth." Its URL was akebono.stanford.edu/~yahoo.

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The yahoo.com domain was created in January 1995, although by the end of 1994 Yahoo! had already received one million hits. Yang and Filo realized their website had massive business potential, and on March 2, 1995, Yahoo! was incorporated.{{cite web |title=Inventing Yahoo! |author=David Rapp |year=2006 |url=http://www.americanheritage.com/events/articles/web/20060412-yahoo-internet-search-engine-jerry-yang-david-filo-america-online-google-ipo-email.shtml |publisher=American Heritage |access-date=2008-02-22|archive-date=July 16, 2010 |archive-url=https://web.archive.org/web/20100716081021/http://www.americanheritage.com/events/articles/web/20060412-yahoo-internet-search-engine-jerry-yang-david-filo-america-online-google-ipo-email.shtml}}

Yang and Filo sought the advice of entrepreneur Randy Adams for a recommendation of a venture capital firm, and Adams introduced them to Michael Moritz.{{cite news |url=https://books.google.com/books?id=iOm_hPc8IMwC&q=randy+adams+yahoo+Jerry+Yang&pg=PA30 |title=Jerry Yang and David Filo |isbn=9780761319610 |last1=Sherman |first1=Josepha |date=January 2001 |publisher=Twenty-First Century Books |access-date=October 26, 2020 |archive-date=April 21, 2024 |archive-url=https://web.archive.org/web/20240421144350/https://books.google.com/books?id=iOm_hPc8IMwC&q=randy+adams+yahoo+Jerry+Yang&pg=PA30#v=snippet&q=randy%20adams%20yahoo%20Jerry%20Yang&f=false |url-status=live }} On April 5, 1995, Michael Moritz of Sequoia Capital provided Yahoo! with two rounds of venture capital, raising approximately $3 million.{{cite news |author=Eric Schmidt |author-link=Eric Schmidt |url=http://www.time.com/time/specials/2007/time100/article/0,28804,1595326_1615737_1616199,00.html |archive-url=https://web.archive.org/web/20070505050506/http://www.time.com/time/specials/2007/time100/article/0,28804,1595326_1615737_1616199,00.html |url-status=dead |archive-date=May 5, 2007 |title=The Time 100 – Michael Moritz |publisher=Time |access-date=2008-11-08 |date=May 3, 2007}}{{cite web |url=http://yhoo.client.shareholder.com/press/timeline.cfm|archive-url=https://web.archive.org/web/20080213120416/http://yhoo.client.shareholder.com/press/timeline.cfm |archive-date=February 13, 2008 |title=Yahoo Company Timeline |access-date=2008-08-18}} On April 12, 1996, Yahoo! had its initial public offering, raising $33.8 million by selling 2.6 million shares at the opening bid of $13 each. The company's shares traded on Nasdaq under the ticker symbol YHOO.

The word "Yahoo" had previously been trademarked for barbecue sauce, knives (by EBSCO Industries) and human propelled watercraft (by Old Town Canoe Co.). Therefore, in order to get control of the trademark, Yang and Filo added the exclamation mark to the name.{{cite web|last=Welford|first=Barry|url=http://www.bpwrap.com/2004/04/a-rose-by-any-other-name/|title=A Rose By Any Other Name|publisher=BPWrap|date=30 April 2004|access-date=27 May 2013|archive-date=May 1, 2021|archive-url=https://web.archive.org/web/20210501211856/http://www.bpwrap.com/2004/04/a-rose-by-any-other-name/|url-status=live}} However, the exclamation mark is often incorrectly omitted when referring to Yahoo!. Srinija Srinivasan, an alumna of Stanford University, was hired as Yahoo!'s fifth employee as "Ontological Yahoo!" to assist Yang and Filo with organizing the content on the internet.{{Cite journal|url = https://www.wsj.com/news/articles/SB10001424052748704017904575409210554671690|title = Yahoo Executive Srinivasan to Leave|last = Letzing|first = John|date = August 10, 2010|journal = The Wall Street Journal|access-date = January 19, 2015|archive-date = January 19, 2015|archive-url = https://web.archive.org/web/20150119223615/http://www.wsj.com/news/articles/SB10001424052748704017904575409210554671690|url-status = live}}{{Cite magazine|url = http://archive.wired.com/wired/archive/4.05/indexweb.html?pg=2|title = Seek and Ye Shall Find (Maybe)|last = Steinberg|first = Steve|date = May 1996|magazine = Wired|access-date = January 19, 2015}}

File:Yahoo Headquarters.jpg]]

In the late 1990s, Yahoo!, MSN, Lycos, Excite, and other web portals were growing rapidly. Web portal providers moved to acquire companies to expand their range of services, generally with the goal of increasing the time each user stays within the portal.

On March 8, 1997, Yahoo! acquired online communications company Four11. Four11's webmail service, Rocketmail, became Yahoo! Mail. The company also acquired ClassicGames.com and re-branded it Yahoo! Games. Yahoo! acquired direct marketing company Yoyodyne Entertainment, Inc. on October 12, 1998.{{cite magazine | url=https://www.wired.com/news/business/0,1367,15555,00.html | magazine=Wired | title=Yahoo Acquiring Yoyodyne | date=October 12, 1998 | access-date=March 7, 2017 | archive-date=March 11, 2007 | archive-url=https://web.archive.org/web/20070311004241/http://www.wired.com/news/business/0,1367,15555,00.html | url-status=live }} In January 1999, Yahoo! acquired web hosting provider GeoCities. Yahoo! also acquired eGroups, which became Yahoo! Groups in June 2000. It acquired Pager,{{cite web |url=http://yhoo.client.shareholder.com/common/mobile/iphone/releasedetail.cfm?releaseid=173501&CompanyID=YHOO |archive-url=https://web.archive.org/web/20140313050941/http://yhoo.client.shareholder.com/common/mobile/iphone/releasedetail.cfm?releaseid=173501&CompanyID=YHOO |url-status=dead |archive-date=2014-03-13 |title=Stay in Touch With Yahoo! Pager |publisher=Yahoo |access-date=2008-12-08 }} an instant messaging service that was renamed Yahoo! Messenger a year later.

When acquiring companies, Yahoo! often changed the terms of service. For example, they claimed intellectual property rights for content on their servers, unlike the previous policies of the companies they acquired. As a result, many of the acquisitions were controversial and unpopular with users of the existing services.{{Cite web |title=Yahoo relents on GeoCities terms |url=https://www.cnet.com/tech/services-and-software/yahoo-relents-on-geocities-terms/ |access-date=2024-11-04 |website=CNET |language=en}}

Yahoo! stock doubled in price in the last month of 1999.{{cite web |title=YHOO: Historical Prices for Yahoo Inc – Yahoo! Finance |url=https://finance.yahoo.com/q/hp?s=YHOO&a=10&b=30&c=1999&d=11&e=31&f=1999&g=d |publisher=Yahoo! Finance |access-date=2008-11-02 |archive-date=March 4, 2016 |archive-url=https://web.archive.org/web/20160304224749/http://finance.yahoo.com/q/hp?s=YHOO&a=10&b=30&c=1999&d=11&e=31&f=1999&g=d |url-status=live }} On January 3, 2000, at the height of the dot-com boom, Yahoo! stock closed at a high of $118.75 a share. Sixteen days later, shares in Yahoo! Japan became the first stock in Japanese history to trade at over ¥100,000,000, reaching a price of 101.4 million yen ($962,140 at that time).{{cite web |year=2000 |author=William Auckerman |title=Yahoo Japan Stock Breaks 100 Million Yen Barrier |url=http://www.internetnews.com/ent-news/print.php/289851 |publisher=Jupitermedia |access-date=2008-02-22 |archive-date=May 24, 2006 |archive-url=https://web.archive.org/web/20060524131425/http://www.internetnews.com/ent-news/print.php/289851 |url-status=live }}

On February 7, 2000, yahoo.com was brought down for a few hours as the victim of a distributed denial of service attack (DDoS).{{cite book |title=Computer Security Handbook |author=Seymour Bosworth |author2=M. E. Kabay |year=2002 |page=[https://archive.org/details/computersecurity4theunse/page/63 63] |publisher=John Wiley & Sons |isbn=978-0-471-26975-5 |url=https://archive.org/details/computersecurity4theunse/page/63 }}{{cite news | url=http://news.bbc.co.uk/1/hi/sci/tech/635444.stm | work=BBC News | title=Yahoo attack exposes web weakness | date=February 9, 2000 | access-date=May 4, 2010 | archive-date=February 21, 2009 | archive-url=https://web.archive.org/web/20090221113642/http://news.bbc.co.uk/1/hi/sci/tech/635444.stm | url-status=live }}[https://archive.today/20120713121601/http://news.com.com/2100-1023-236621.html?legacy=cnet How a basic attack crippled Yahoo | CNET News.com] On the next day, its shares rose about $16, or 4.5 percent as the failure was blamed on hackers rather than on an internal glitch, unlike a fault with eBay earlier that year.

During the dot-com boom, the cable news network CNBC reported that Yahoo! and eBay were discussing a 50/50 merger.{{cite magazine | url=https://www.wired.com/2000/03/yahoo-to-buy-ebay | magazine=Wired | title=Yahoo to Buy EBay? | date=March 14, 2000 | access-date=January 23, 2021 | archive-date=August 17, 2020 | archive-url=https://web.archive.org/web/20200817170402/https://www.wired.com/2000/03/yahoo-to-buy-ebay/ | url-status=live }}{{cite news |author=Saul Hansell |author2=Laura M. Holson |title=The Markets: Market Place; Is the Online Auction King Ebay Going Once? Twice? Not Likely |url=https://query.nytimes.com/gst/fullpage.html?res=9B0DEFD81F3BF935A25750C0A9669C8B63&sec=&spon=&pagewanted=all |work=New York Times |access-date=2009-01-05 |date=March 16, 2000 |archive-date=April 21, 2024 |archive-url=https://web.archive.org/web/20240421144352/https://www.nytimes.com/2000/03/16/business/markets-market-place-online-auction-king-ebay-going-once-twice-not-likely.html |url-status=live }} Although the merger never materialized, the two companies decided to form a marketing/advertising alliance six years later in 2006.{{cite news |title=Yahoo, eBay form Web advertising alliance |url=https://www.nbcnews.com/id/wbna12970936 |agency=Associated Press |year=2006 |access-date=2008-02-24 |archive-date=March 6, 2016 |archive-url=https://web.archive.org/web/20160306043457/http://www.nbcnews.com/id/12970936/ |url-status=live }}

On June 26, 2000, Yahoo! and Google signed an agreement which would engage the Google engine to power searches made on yahoo.com.{{Cite web |url=https://www.google.com/googlefriends/alert2_2000.html |title=GoogleAlert #2: Yahoo! Selects Google as its Default Search Engine Provider, but in Feb. 2004, Google was replaced by Yahoo's own search: Yahoo! Search |access-date=November 11, 2016 |archive-date=June 19, 2015 |archive-url=https://web.archive.org/web/20150619015952/http://www.google.com/googlefriends/alert2_2000.html |url-status=live }}

In 2000, Yahoo became one of the first companies to implement a BizOps or business operations team.{{Cite web|title=BizOps the Connective Tissue in Tech Companies|url=https://www.linkedin.com/pulse/why-bizops-hottest-team-tech-dan-yoo|access-date=2021-03-22|website=www.linkedin.com|language=en|archive-date=August 25, 2021|archive-url=https://web.archive.org/web/20210825033735/https://www.linkedin.com/pulse/why-bizops-hottest-team-tech-dan-yoo/|url-status=live}}

Yahoo! was one of the few surviving companies after the dot-com bubble burst. Nevertheless, on September 26, 2001, Yahoo! stock closed at an all-time low of $8.11.

Yahoo! formed partnerships with telecommunications and Internet providers to create content-rich broadband services to compete with AOL. On June 3, 2002, SBC and Yahoo! launched a national co-branded dialup service.{{cite web |title=Internet Leaders SBC and Yahoo! Launch National Co-Branded Dial Service |url=http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=20046 |publisher=att.com |access-date=2008-02-25 |archive-date=June 7, 2011 |archive-url=https://web.archive.org/web/20110607225851/http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=20046 |url-status=live }}{{Cite web |url=http://www.sbc.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=20046 |title=AT&T- News Room |access-date=June 9, 2006 |archive-date=July 12, 2006 |archive-url=https://web.archive.org/web/20060712172606/http://www.sbc.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=20046 |url-status=live }} In July 2003, BT Openworld announced an alliance with Yahoo!

{{cite web |title=Internet alliance BT and Yahoo!|url=http://www.telecom.paper.nl/news/article.aspx?id=30241&nr=806 |publisher=telecom.paper.nl |access-date=2008-02-25 |archive-url = https://web.archive.org/web/20080311075247/http://www.telecom.paper.nl/news/article.aspx?id=30241&nr=806 |archive-date = March 11, 2008}}{{cite web|url=http://www.groupbt.com/News/Articles/ShowArticle.cfm?ArticleID=fa2aec1b-0336-4b33-8d7e-85900c10ea33|title=BT CONTINUES TO DELIVER ON BROADBAND TARGETS|publisher=BT Group|date=1 July 2003|access-date=27 May 2013|archive-date=March 10, 2007 |archive-url=https://web.archive.org/web/20070310230633/http://www.groupbt.com/News/Articles/ShowArticle.cfm?ArticleID=fa2aec1b-0336-4b33-8d7e-85900c10ea33}} On August 23, 2005, Yahoo! and Verizon launched an integrated DSL service.{{cite web|url=http://yhoo.client.shareholder.com/common/mobile/iphone/releasedetail.cfm?ReleaseID=171328&CompanyID=YHOO|title=Verizon and Yahoo! Launch Integrated DSL Service Combining Broadband Speed with Premium Content|publisher=Yahoo!|date=23 August 2005|access-date=27 May 2013|archive-date=October 22, 2014|archive-url=https://web.archive.org/web/20141022230027/http://yhoo.client.shareholder.com/common/mobile/iphone/releasedetail.cfm?ReleaseID=171328&CompanyID=YHOO|url-status=dead}}

In late 2002, Yahoo! began to bolster its search services by acquiring other search engines. In December 2002, Yahoo! acquired Inktomi. In February 2005, Yahoo! acquired Konfabulator and rebranded it Yahoo! Widgets,{{cite web |title=Konfabulator 2.1: Ajax additions |url=http://ajaxian.com/archives/konfabulator-21-ajax-additions |publisher=ajaxian.com |access-date=2008-02-25 |archive-date=March 6, 2008 |archive-url=https://web.archive.org/web/20080306220623/http://ajaxian.com/archives/konfabulator-21-ajax-additions |url-status=live }} a desktop application, and in July 2003, it acquired Overture Services, Inc. and its subsidiaries AltaVista and AlltheWeb. On February 18, 2004, Yahoo! dropped Google-powered results and returned to using its own technology to provide search results.{{cite web |title=Yahoo dumps Google search technology |url=http://news.cnet.com/2100-1024_3-5160710.html |publisher=cnet.com |access-date=2010-08-12 |archive-date=June 17, 2011 |archive-url=https://web.archive.org/web/20110617082344/http://news.cnet.com/2100-1024_3-5160710.html |url-status=live }}

In March 2004, Yahoo! launched a paid inclusion program whereby commercial websites were guaranteed listings on the Yahoo! search engine after payment.{{cite web|title=Yahoo! Introduces Paid-Inclusion Program |url=http://www.adweek.com/aw/iq_interactive/article_display.jsp?vnu_content_id=1000451392 |publisher=adweek.com |access-date=2008-02-22 |archive-url=https://web.archive.org/web/20070927213149/http://www.adweek.com/aw/iq_interactive/article_display.jsp?vnu_content_id=1000451392 |archive-date=September 27, 2007 |url-status=dead |df=mdy-all }} This scheme was lucrative, but proved unpopular both with website marketers (who were reluctant to pay), and the public (who were unhappy about the paid-for listings being indistinguishable from other search results).{{cite news|title=Paid Inclusion Losing Charm? |url=https://www.wired.com/techbiz/media/news/2004/07/64092 |publisher=wired.com |access-date=2008-02-22 |date=2004-07-05 |url-status=dead |archive-url=https://web.archive.org/web/20080327030829/http://www.wired.com/techbiz/media/news/2004/07/64092 |archive-date=March 27, 2008 }} In October 2006, Paid Inclusion ceased to guarantee any commercial listing and only helped the paid inclusion customers by crawling their site more often, by providing some statistics on the searches that led to the page, and posting additional smart links (provided by customers as feeds) below the actual url.

In 2004, in response to Google's release of Gmail, Yahoo! upgraded the storage of all free Yahoo! Mail accounts from 4 MB to 1 GB, and all Yahoo! Mail Plus accounts to 2 GB. On July 9, 2004, Yahoo! acquired e-mail provider Oddpost, adding an Ajax interface to Yahoo! Mail Beta.{{cite web |title=Yahoo acquires Oddpost to bolster e-mail |url=http://www.news.com/2100-1038_3-5266019.html |publisher=news.com |access-date=2008-02-25 |archive-date=October 21, 2007 |archive-url=https://web.archive.org/web/20071021155023/http://www.news.com/2100-1038_3-5266019.html |url-status=live }} Google released Google Talk, a voice over IP service, and Yahoo Messenger and Yahoo message boards service, on August 24, 2005. On October 13, 2005, Yahoo! and Microsoft announced that Yahoo! and MSN Messenger would become interoperable. In 2007, Yahoo! removed the storage meters on Yahoo Mail, allowing users unlimited storage.{{cite web|last=Cashmore|first=Pete|url=http://mashable.com/2007/05/14/yahoo-mail-unlimited/|title=Yahoo Mail Unlimited Storage: Time to Test the Limits!|publisher=Mashable|date=15 May 2007|access-date=27 May 2013|archive-date=August 14, 2012|archive-url=https://web.archive.org/web/20120814051628/http://mashable.com/2007/05/14/yahoo-mail-unlimited/|url-status=live}}

Yahoo! continued the acquisition of companies to expand its range of services, particularly Web 2.0 services. Yahoo! Launch became Yahoo! Music in February 2005. On March 20, 2005, Yahoo! purchased photo sharing service Flickr.{{cite web |title=Yahoo actually does acquire Flickr |date=March 20, 2005 |url=http://blog.flickr.net/en/2005/03/20/yahoo-actually-does-acquire-flickr/ |publisher=flickr.com |access-date=2008-02-25 |archive-date=July 28, 2014 |archive-url=https://web.archive.org/web/20140728181713/http://blog.flickr.net/en/2005/03/20/yahoo-actually-does-acquire-flickr/ |url-status=live }} That same month, the company launched its blogging and social networking service Yahoo! 360°. In June 2005, Yahoo! acquired blo.gs, a service based on RSS feed aggregation. Yahoo! purchased the online social event calendar Upcoming.org, in October 2005. Yahoo! acquired social bookmark site del.icio.us in December 2005, and the playlist sharing community webjay in January 2009.

Yahoo! Next was an incubation ground for future Yahoo! technologies in their beta testing phase, similar to Google Labs. It contained forums for Yahoo! users to give feedback to assist in the development of these future Yahoo! technologies.

In early 2006, Yahoo! offered to users the opportunity to beta test a new version of the Yahoo! homepage. However, the test only had support for Internet Explorer and Mozilla Firefox browsers. Users of other browsers, such as Opera, have criticized Yahoo! for this move. Yahoo! says they intend to support additional browsers in the future.

On August 27, 2007, Yahoo! released a new version of Yahoo! Mail. It added Yahoo! Messenger integration (which included Windows Live Messenger due to the networks' federation) and free text messages (although not necessarily free to the receiver) to mobile phones in the U.S., Canada, India, and the Philippines.{{cite web |title=SiliconRepublic: Yahoo releases new email service |url=http://www.siliconrepublic.com/news/news.nv?storyid=single9082 |publisher=siliconrepublic.com |access-date=2008-02-25 |archive-url = https://web.archive.org/web/20071117094040/http://www.siliconrepublic.com/news/news.nv?storyid=single9082 |archive-date = November 17, 2007}}

On January 29, 2008, Yahoo! announced that the company was laying off 1,000 employees, as the company had failed to effectively compete with industry search leader Google. The cuts represented 7% of the company's workforce of 14,300.{{cite news |title=Yahoo to lay off 1,000 |url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/29/BUJ5UOBFI.DTL |publisher=San Francisco Chronicle |access-date=2008-07-24 |first=Verne |last=Kopytoff |date=January 30, 2008 |archive-date=June 28, 2009 |archive-url=https://web.archive.org/web/20090628015531/http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/29/BUJ5UOBFI.DTL |url-status=live }}

In February 2008, Yahoo! acquired Cambridge, Massachusetts-based Maven Networks, a supplier of internet video players and video advertising tools, for approximately $160 million.

Yahoo! announced on November 17, 2008, that Jerry Yang would be stepping down as CEO.{{cite web|last=Liedtke|first=Michael|url=http://usatoday30.usatoday.com/money/topstories/2008-11-17-1247748225_x.htm|title=Yahoo's Yang decides he's no longer the right CEO|publisher=USA Today|date=18 November 2008|access-date=27 May 2013|quote=Summit in San Francisco. Yahoo said Monday Nov. 17, 2008 that Yang will step down as the Internet company's CEO as soon as a successor is found.|archive-date=October 22, 2014|archive-url=https://web.archive.org/web/20141022231558/http://usatoday30.usatoday.com/money/topstories/2008-11-17-1247748225_x.htm|url-status=live}}

On December 10, 2008, Yahoo! began layoffs of 1,520 employees world-wide as the company due to the global economic downturn.[http://news.cnet.com/8301-1023_3-10120253-93.html Yahoo pink slips issued, recruiters circling above | Digital Media – CNET News] {{Webarchive|url=https://web.archive.org/web/20120419204249/http://news.cnet.com/8301-1023_3-10120253-93.html |date=April 19, 2012 }}.

Microsoft and Yahoo! were in merger discussions in 2005, 2006, and 2007, that were ultimately unsuccessful. At the time, analysts were skeptical about the wisdom of a business combination by these two firms.{{cite news |work=Forbes |access-date=2008-02-01 |title=Microsoft, Yahoo! In Possible Partnership Talks |author=Mary Crane |date=May 3, 2006 |url=https://www.forbes.com/2006/05/03/yahoo-microsoft-partnership-0503markets04.html |archive-date=March 3, 2016 |archive-url=https://web.archive.org/web/20160303220706/http://www.forbes.com/2006/05/03/yahoo-microsoft-partnership-0503markets04.html |url-status=live }}{{cite news |agency=Associated Press |title=Microsoft and Yahoo end on-again off-again talks to combine forces |date=May 4, 2007 |url=http://www.arkansasonline.com/news/2007/may/04/reports-microsoft-and-yahoo-end--again--again-talk/ |access-date=2008-02-01 |archive-date=October 22, 2014 |archive-url=https://web.archive.org/web/20141022225059/http://www.arkansasonline.com/news/2007/may/04/reports-microsoft-and-yahoo-end--again--again-talk/ |url-status=live }}

On February 1, 2008, after its friendly takeover offer was rebuffed by Yahoo!, Microsoft made an unsolicited takeover bid to buy Yahoo! for $44.6 billion in cash and stock.{{cite news |title=Microsoft wants to purchase Yahoo |url=http://news.bbc.co.uk/1/hi/business/7222114.stm |publisher=bbc.co.uk |access-date=2008-02-25 |date=February 1, 2008 |archive-date=February 16, 2009 |archive-url=https://web.archive.org/web/20090216172525/http://news.bbc.co.uk/1/hi/business/7222114.stm |url-status=live }}{{cite news |title=Microsoft Offers to Buy Yahoo for $44.6 Billion |access-date=2008-02-01 |date=February 1, 2008 |url=https://www.bloomberg.com/apps/news?pid=20601103&sid=aLsamJL6qUQY&refer=news |publisher=Bloomberg |archive-date=April 21, 2024 |archive-url=https://web.archive.org/web/20240421144305/https://www.bloomberg.com/politics?pid=20601103&refer=news&sid=aLsamJL6qUQY |url-status=live }} Days later, Yahoo! considered alternatives to the merger with Microsoft, including a merger with Internet giant Google{{cite news |first=Mick |last=Jason |title=Microsoft May Borrow For Yahoo Deal; Yahoo Opts for Google Alliance |date=February 6, 2008 |url=http://www.dailytech.com/article.aspx?newsid=10586 |work=DailyTech |access-date=2008-02-06 |archive-date=July 16, 2010 |archive-url=https://web.archive.org/web/20100716014828/http://www.dailytech.com/article.aspx?newsid=10586 |url-status=dead }} or a potential transaction with News Corp.{{cite news |first=Peter |last=Kafka |title=Yahoo-News Corp Still Talking, Deal Still Possible |date=February 12, 2008 |url=http://www.alleyinsider.com/2008/2/yahoo__news_corp__deal_still_in_the_works_ |work=AlleyInsider |access-date=2008-03-18 |archive-date=February 2, 2009 |archive-url=https://web.archive.org/web/20090202115035/http://www.alleyinsider.com/2008/2/yahoo__news_corp__deal_still_in_the_works_ |url-status=dead }} On February 11, 2008, Yahoo! rejected Microsoft's offer as "substantially undervaluing" Yahoo!'s brand, audience, investments, and growth prospects.{{cite news |publisher=Business Wire |access-date=2008-02-11 |title=Yahoo! Board of Directors Says Microsoft's Proposal Substantially Undervalues Yahoo! |date=February 1, 2008 |url=http://yhoo.client.shareholder.com/releasedetail.cfm?releaseid=293129 |archive-url=https://web.archive.org/web/20080214160556/http://yhoo.client.shareholder.com/releasedetail.cfm?ReleaseID=293129 |archive-date=February 14, 2008 |url-status=dead }}

On February 22, two Detroit-based pension companies sued Yahoo! and its board of directors for allegedly breaching their duty to shareholders by opposing Microsoft's takeover bid and pursuing "value destructive" third-party deals.{{cite web|last=Chase|first=Randall|url=http://usatoday30.usatoday.com/tech/products/2008-02-22-435052336_x.htm|title=Yahoo sued for spurning Microsoft|publisher=USA Today|date=22 February 2008|access-date=27 May 2013|archive-date=October 22, 2014|archive-url=https://web.archive.org/web/20141022231754/http://usatoday30.usatoday.com/tech/products/2008-02-22-435052336_x.htm|url-status=live}} In early March, Google CEO Eric Schmidt went on record saying that he was concerned that a potential Microsoft-Yahoo! merger might hurt the internet by compromising its openness.{{cite news |title=Microsoft's moves 'threaten net' |access-date=2008-03-18 |url=http://news.bbc.co.uk/2/hi/technology/7300337.stm |work=BBC News |date=March 17, 2008 |archive-date=September 30, 2009 |archive-url=https://web.archive.org/web/20090930152134/http://news.bbc.co.uk/2/hi/technology/7300337.stm |url-status=live }} The value of Microsoft's cash and stock offer declined with Microsoft's stock price, falling to $42.2 billion by April 4.{{cite news |title=Microsoft CEO sets deadline to Yahoo for deal |url=https://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN0543364420080405?pageNumber=2&virtualBrandChannel=0 |publisher=Reuters |access-date=2008-04-10 |date=April 5, 2008 |first=Daisuke |last=Wakabayashi |archive-date=November 21, 2022 |archive-url=https://web.archive.org/web/20221121113027/https://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN0543364420080405?pageNumber=2&virtualBrandChannel=0 |url-status=live }} On April 5, Microsoft CEO Steve Ballmer sent a letter to Yahoo!'s board of directors stating that if within three weeks they had not accepted the deal, Microsoft would approach shareholders directly in hopes of electing a new board and moving forward with merger talks (a hostile takeover).{{cite web |title=Microsoft sets deadline for Yahoo bid |url=https://www.nbcnews.com/id/wbna23958838 |archive-url=https://web.archive.org/web/20080406212452/http://www.msnbc.msn.com/id/23958838/ |url-status=live |archive-date=2008-04-06 |publisher=MSNBC |access-date=2008-04-10}} In response, Yahoo! stated on April 7 that they were not opposed to a merger, but that they wanted a better offer. In addition, they stated that Microsoft's "aggressive" approach was worsening their relationship and the chances of a "friendly" merger.{{cite web |title=Microsoft-Yahoo fight reaches the turning point |date=April 7, 2008 |url=https://www.nbcnews.com/id/wbna23992701 |publisher=NBC News |access-date=2008-04-10 |archive-date=January 16, 2016 |archive-url=https://web.archive.org/web/20160116080905/http://www.nbcnews.com/id/23992701/ |url-status=live }} Later the same day, Yahoo! stated that the original $44.6 billion offer was not acceptable. Following this, there was considerable discussion of having Time Warner's AOL and Yahoo! merge, instead of the originally proposed Microsoft deal.{{cite news |title=Yahoo brings two titans to the table |url=http://www.theaustralian.news.com.au/story/0,25197,23519656-643,00.html |archive-url=https://web.archive.org/web/20080617121847/http://www.theaustralian.news.com.au/story/0,25197,23519656-643,00.html |url-status=dead |archive-date=June 17, 2008 |publisher=The Australian |access-date=2008-04-10 | first=Nick | last=Tabakoff | date=April 11, 2008}}

On May 3, 2008, Microsoft withdrew the offer. During a meeting between Ballmer and Yang, Microsoft had offered to raise its offer by $5 billion to $33 per share, while Yahoo! demanded $37 per share. One of Ballmer's representatives suggested that Yang would implement a poison pill to make the takeover as difficult as possible, saying "They are going to burn the furniture if we go hostile. They are going to destroy the place."{{cite web |title=Microsoft Withdraws Proposal to Acquire Yahoo! |url=https://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx |publisher=Microsoft |access-date=2008-05-03 |archive-date=February 10, 2012 |archive-url=https://web.archive.org/web/20120210175620/http://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx |url-status=live }}{{cite news |title=Microsoft's Failed Yahoo Bid Risks Online Growth |url=https://www.nytimes.com/2008/05/05/technology/05soft.html?_r=4&hp&oref=slogin&oref=slogin&oref=slogin&oref=slogin |work=New York Times |access-date=2008-05-06 |first=Steve |last=Lohr |date=May 5, 2008 |archive-date=April 15, 2009 |archive-url=https://web.archive.org/web/20090415233507/http://www.nytimes.com/2008/05/05/technology/05soft.html?_r=4&hp&oref=slogin&oref=slogin&oref=slogin&oref=slogin |url-status=live }}

Analysts said that Yahoo!'s shares, which closed at $28.67 per share on May 2, were likely to drop below $25 per share and perhaps as low as $20 per share on May 5, which would put significant pressure on Yang to engineer a turnaround of the company. Some suggested that institutional investors would file lawsuits against Yahoo!'s board of directors for not acting in shareholder interest by refusing Microsoft's offer.{{cite news |title=A Yahoo Shareholder on What Might Have Been |url=https://www.nytimes.com/2008/05/05/technology/05miller-WEB.html |work=New York Times |access-date=2008-05-31 |first=Miguel |last=Helft |date=May 5, 2008 |archive-date=April 5, 2019 |archive-url=https://web.archive.org/web/20190405134251/https://www.nytimes.com/2008/05/05/technology/05miller-WEB.html |url-status=live }}{{cite news |title=Pressure's now on Yahoo CEO |url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/04/MN0B10GOK9.DTL |publisher=San Francisco Chronicle |access-date=2008-05-31 |first1=Verne |last1=Kopytoff |first2=Deborah |last2=Gage |date=May 5, 2008 |archive-date=June 28, 2009 |archive-url=https://web.archive.org/web/20090628015536/http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/04/MN0B10GOK9.DTL |url-status=live }}

On May 5, 2008, following Microsoft's withdrawal, Yahoo!'s stock dropped 15% lower to $23.02 per share in Monday trading and trimmed about $6 billion off of its market capitalization.{{cite web |title=Yahoo Falls After Microsoft Yanks Takeover Bid |url=http://www.smartmoney.com/investing/stocks/yahoo-falls-after-microsoft-yanks-takeover-bid-23007/ |publisher=SmartMoney |access-date=2008-05-06 |archive-date=July 17, 2010 |archive-url=https://web.archive.org/web/20100717154914/http://www.smartmoney.com/investing/stocks/yahoo-falls-after-microsoft-yanks-takeover-bid-23007/ |url-status=live }}

On June 12, 2008, Yahoo! announced that it had ended all talks with Microsoft about purchasing either part of the business (the search advertising business) or the entire company. Talks had taken place the previous weekend (June 8), during which Microsoft allegedly told Yahoo! that it was no longer interested in a purchase of the company at the price offered earlier – $33 per share. Also, on June 12, Yahoo! announced a non-exclusive search advertising alliance with Google.{{cite news |title=Yahoo Ends Talks With Microsoft, Signs Search-Ad Deal with Google |url=https://www.wsj.com/articles/SB121329534659368693 |publisher=Wall Street Journal |access-date=2008-06-12 |first1=Matthew |last1=Karnitschnig |first2=Jessica E. |last2=Vascellaro |date=June 13, 2008 |archive-date=June 11, 2017 |archive-url=https://web.archive.org/web/20170611103548/https://www.wsj.com/articles/SB121329534659368693 |url-status=live }} Upon this announcement, many executives and senior employees announced their plans to leave the company as they appeared to have lost confidence in Yahoo!'s strategies. According to market analysts, those pending departures impacted Wall Street's perception of the company.{{cite news |url=https://www.nytimes.com/2008/06/20/technology/20yahoo.html |title=At Yahoo, the Exodus Continues |author=Helft, Miguel |publisher=NY Times |date=June 20, 2008 |access-date=2008-06-20 |archive-date=September 10, 2017 |archive-url=https://web.archive.org/web/20170910064208/http://www.nytimes.com/2008/06/20/technology/20yahoo.html |url-status=live }}

On July 7, 2008, Microsoft said it would consider offering another bid for Yahoo! if the company's nine directors would be ousted at the annual meeting scheduled to be held on August 1, 2008. Microsoft believed it would be able to better negotiate with a new board.{{cite web|last=Liedtke|first=Michael|url=http://www.deseretnews.com/article/700241272/Microsoft-wants-to-negotiate-with-new-Yahoo-board.html|title=Microsoft wants to negotiate with new Yahoo board|publisher=Deseret News|date=7 July 2008|access-date=27 May 2013|archive-date=November 1, 2014|archive-url=https://web.archive.org/web/20141101125913/http://www.deseretnews.com/article/700241272/Microsoft-wants-to-negotiate-with-new-Yahoo-board.html|url-status=dead}}

Billionaire investor Carl Icahn, calling the current board irrational in its approach to talks with Microsoft, launched a proxy fight to replace Yahoo!'s board. On July 21, 2008, Yahoo! settled with Carl Icahn, agreeing to appoint him and two of his allies to an expanded board.

On November 20, 2008, almost 10 months after Microsoft's initial offer of $33 per share, Yahoo!'s stock (YHOO) dropped to a 52-week low, trading at only $8.94 per share.{{cite web |url=http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YHOO |title=YHOO stock quote - Yahoo! Inc. stock price - NASDAQ.com |author=NASDAQ |publisher=NASDAQ |date=November 20, 2008 |access-date=2008-11-20 |archive-date=July 17, 2010 |archive-url=https://web.archive.org/web/20100717210119/http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=YHOO |url-status=live }}

On November 30, 2008, Microsoft offered to buy Yahoo!'s search business for $20 billion.{{cite news |url=http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article5258258.ece |title=Microsoft in $20bn Yahoo deal |author=John Waples |publisher=Times Online |date=November 30, 2008 |access-date=2008-11-30 |location=London|archive-date=June 12, 2011 |archive-url=https://web.archive.org/web/20110612004837/http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article5258258.ece}}

On July 29, 2009, a 10-year deal was announced giving Microsoft full access to Yahoo!'s search engine to be used in future Microsoft projects in its Bing search engine.{{cite web |url=http://www.edgeboston.com/index.php?ch=technology&sc=personaltech&sc2=news&sc3=&id=94299 |title=Microsoft, Yahoo! agree on Internet search partnership |publisher=EDGE Boston |date=29 July 2009 |access-date=2010-08-24 |archive-date=October 28, 2014 |archive-url=https://web.archive.org/web/20141028135057/http://www.edgeboston.com/index.php?ch=technology&sc=personaltech&sc2=news&sc3=&id=94299 |url-status=live }}

Under the deal, Microsoft was not required to pay any cash up front to Yahoo!. The day after the deal was announced, Yahoo!'s share price declined more than 10% to $15.14 per share, about 60% lower than Microsoft's takeover bid a year earlier.

On January 13, 2009, Yahoo! appointed Carol Bartz, former executive chairman of Autodesk, as its new chief executive officer and a member of the board of directors.{{cite web|last=Hof |first=Rob |url=http://www.businessweek.com/the_thread/techbeat/archives/2009/01/carol_bartz_to.html |archive-url=https://web.archive.org/web/20090119115137/http://www.businessweek.com/the_thread/techbeat/archives/2009/01/carol_bartz_to.html |url-status=dead |archive-date=January 19, 2009 |title=Confirmed: Carol Bartz Named Yahoo CEO: Can She Turn It Around? |publisher=BusinessWeek |date=January 13, 2009 |access-date=2012-10-19}}

Yahoo! wished to change its direction after chief executive Carol Bartz replaced co-founder Jerry Yang.

In July 2009, Microsoft and Yahoo! agreed to a deal that would see Yahoo!'s websites use both Microsoft's search technology and search advertising.{{cite web|last=Goldman|first=David|url=https://money.cnn.com/2009/07/29/technology/microsoft_yahoo/|title=Microsoft and Yahoo: Search partners|publisher=CNNMoney.com|date=29 July 2009|access-date=27 May 2013|archive-date=February 11, 2021|archive-url=https://web.archive.org/web/20210211070131/https://money.cnn.com/2009/07/29/technology/microsoft_yahoo/|url-status=live}} Yahoo! in turn became the sales team for banner advertising for both companies. While Microsoft would provide algorithmic search results, Yahoo! would control the presentation and personalization of results for searches on its pages.

On July 21, 2009, Yahoo! launched a new version of its front page, called Metro. The new page allowed users to customize it through the prominent "My Favorites" panel on the left side and integrate third-party web services and launch them within one page.[http://www.pcworld.com/article/168767/yahoo_home_page_gets_a_new_look.html Yahoo Home Page Gets A New Look] {{Webarchive|url=https://web.archive.org/web/20120422083606/http://www.pcworld.com/article/168767/yahoo_home_page_gets_a_new_look.html |date=April 22, 2012 }}.

On October 28, 2009, Bartz told PCWorld that she struggled with the question of what Yahoo! is when she took over as CEO in January 2009. After talking to many users in about 10 countries, she said, Yahoo! executives concluded that users consider it their "home on the Internet."[https://www.pcworld.com/article/174579/bartz_yahoo_wants_to_regain_respect.html Bartz: Yahoo Wants to Regain R-E-S-P-E-C-T]{{Dead link|date=August 2023 |bot=InternetArchiveBot |fix-attempted=yes }} PCWorld, October 28, 2009

In September 2011, Bartz sent an email to Yahoo! employees saying she was removed from her position at Yahoo! by the company's chairman Roy Bostock via a phone call.{{cite web |url=https://techcrunch.com/2011/09/06/carol-bartz-fired/ |title=Carol Bartz Confirms Her Own Firing – From Her iPad |publisher=TechCrunch |date=September 6, 2011 |access-date=2012-10-19 |archive-date=February 1, 2017 |archive-url=https://web.archive.org/web/20170201114432/https://techcrunch.com/2011/09/06/carol-bartz-fired/ |url-status=live }} CFO Tim Morse was named as Interim CEO of the company.{{cite web |url=http://allthingsd.com/20110906/exclusive-carol-bartz-out-at-yahoo-cfo-interim-ceo/ |title=Exclusive: Carol Bartz Out at Yahoo; CFO Tim Morse Named Interim CEO – Kara Swisher – News |publisher=AllThingsD |date=September 6, 2011 |access-date=2012-10-19 |archive-date=September 9, 2011 |archive-url=https://web.archive.org/web/20110909141710/http://allthingsd.com/20110906/exclusive-carol-bartz-out-at-yahoo-cfo-interim-ceo/ |url-status=live }}{{cite news | url=https://www.smh.com.au/business/world-business/yahoo-fires-ceo-after-tumultuous-tenure-20110907-1jwmu.html | work=The Sydney Morning Herald | title=Yahoo fires CEO after tumultuous tenure | date=September 7, 2011 | access-date=February 19, 2020 | archive-date=September 17, 2016 | archive-url=https://web.archive.org/web/20160917070830/http://www.smh.com.au/business/world-business/yahoo-fires-ceo-after-tumultuous-tenure-20110907-1jwmu.html | url-status=live }}

On January 4, 2012, Scott Thompson, former President of PayPal, was named the new chief executive officer.{{cite news | url=https://www.huffingtonpost.com/2012/01/04/scott-thompson-named-new-yahoo-ceo_n_1183133.html | work=Huffington Post | title=Scott Thompson Named New Yahoo CEO | date=January 4, 2012 | access-date=February 19, 2020 | archive-date=January 21, 2016 | archive-url=https://web.archive.org/web/20160121192238/http://www.huffingtonpost.com/2012/01/04/scott-thompson-named-new-yahoo-ceo_n_1183133.html | url-status=live }}

In early 2012, after the appointment of Scott Thompson as the new CEO, many rumors spread about large layoffs looming. Kara Swisher who covered Yahoo at All Things Digital reported that Yahoo's Chief Product Officer Blake Irving resigned,{{cite web |url=http://allthingsd.com/20120405/exclusive-yahoos-chief-product-officer-blake-irving-resigns/ |title=Exclusive: Yahoo's Chief Product Officer Blake Irving Resigns – Kara Swisher – News |publisher=AllThingsD |date=April 5, 2012 |access-date=2012-10-19 |archive-date=January 4, 2013 |archive-url=https://web.archive.org/web/20130104215900/http://allthingsd.com/20120405/exclusive-yahoos-chief-product-officer-blake-irving-resigns/ |url-status=live }}

Andrei Broder, who was VP of computational advertising and chief scientist of the Advertising Product Group, as well as Jianchang (JC) Mao, who headed advertising sciences, left the company. This followed the departures of Yahoo! Labs head Prabhakar Raghavan who left for Google, and Raghu Ramakrishnan, who went to Microsoft.{{cite web |url=http://allthingsd.com/20120327/yahoo-prominent-brainiac-drain-continues-goodbye-to-broder-mao/ |title=Yahoo Brainiac Drain Continues: Goodbye to Broder, Mao – Kara Swisher – News |publisher=AllThingsD |date=March 27, 2012 |access-date=2012-10-19 |archive-date=January 11, 2013 |archive-url=https://web.archive.org/web/20130111142754/http://allthingsd.com/20120327/yahoo-prominent-brainiac-drain-continues-goodbye-to-broder-mao/ |url-status=live }}

On April 4, 2012, Yahoo announced a cut of 2,000 jobs or about 14 percent of 14,100 workers employed by Yahoo. Yahoo! said it would save around $375 million annually after the layoffs completed at end of 2012.{{cite web |url=http://www.thejakartapost.com/news/2012/04/04/yahoo-dumping-2000-workers-latest-purge.html |title=Yahoo dumping 2,000 workers in latest purge |date=April 4, 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120616133522/http://www.thejakartapost.com/news/2012/04/04/yahoo-dumping-2000-workers-latest-purge.html |archive-date=June 16, 2012 |df=mdy-all }}

On March 14, Yahoo! filed a lawsuit against Facebook over the alleged infringement of 10 patents.{{cite web |url=https://venturebeat.com/2011/11/08/yahoo-facebook-patent-dispute/ |title=Yahoo patents could throw a monkey wrench into Facebook's IPO hopes |publisher=VentureBeat |date=November 8, 2011 |access-date=2012-10-19 |archive-date=October 8, 2016 |archive-url=https://web.archive.org/web/20161008204643/http://venturebeat.com/2011/11/08/yahoo-facebook-patent-dispute/ |url-status=live }}{{cite web |agency=Reuters |url=http://www.iol.co.za/business/business-news/yahoo-sues-facebook-over-10-patents-1.1255744 |title=Yahoo sues Facebook over 10 patents – Business News | IOL Business |publisher=IOL.co.za |date=March 14, 2012 |access-date=2012-10-19 |archive-date=May 19, 2012 |archive-url=https://web.archive.org/web/20120519230400/http://www.iol.co.za/business/business-news/yahoo-sues-facebook-over-10-patents-1.1255744 |url-status=live }}{{cite web |last=Levine |first=Dan |url=http://www.abs-cbnnews.com/business/tech-biz/03/14/12/yahoo-sues-facebook-infringing-10-patents |title=Yahoo sues Facebook for infringing 10 patents |publisher=ABS-CBN News |access-date=2012-11-08 |archive-date=April 19, 2012 |archive-url=https://web.archive.org/web/20120419015750/http://www.abs-cbnnews.com/business/tech-biz/03/14/12/yahoo-sues-facebook-infringing-10-patents |url-status=live }} Facebook responded by counter suing Yahoo!.{{cite news | url=https://www.telegraph.co.uk/technology/facebook/9185292/Facebook-sues-Yahoo.html | location=London | work=The Daily Telegraph | first=Emma | last=Barnett | title=Facebook sues Yahoo | date=April 4, 2012 | access-date=April 4, 2018 | archive-date=September 22, 2018 | archive-url=https://web.archive.org/web/20180922024718/https://www.telegraph.co.uk/technology/facebook/9185292/Facebook-sues-Yahoo.html | url-status=live }}{{cite web |url=http://allthingsd.com/20120403/breaking-facebook-smacks-at-yahoo-with-patent-claims-of-its-own/ |title=Facebook Smacks Back at Yahoo With Patent Claims in Counter-Lawsuit – Kara Swisher – News |publisher=AllThingsD |date=April 3, 2012 |access-date=2012-10-19 |archive-date=January 2, 2013 |archive-url=https://web.archive.org/web/20130102054751/http://allthingsd.com/20120403/breaking-facebook-smacks-at-yahoo-with-patent-claims-of-its-own/ |url-status=live }}{{cite web |url=https://techcrunch.com/2012/04/04/yahoo-vs-facebook/ |title=How Facebook's Winning The War Against Yahoo, Patent By Patent |publisher=TechCrunch |date=April 4, 2012 |access-date=2012-10-19 |archive-date=July 5, 2017 |archive-url=https://web.archive.org/web/20170705002623/https://techcrunch.com/2012/04/04/yahoo-vs-facebook/ |url-status=live }}

In an email memo sent to employees in April 2012, Scott Thompson re-iterated his view that customers should come first at Yahoo. He defined customers as both users and advertisers. He also re-organized the company. The reorganization took effect on May 1, 2012, and included operations in three major groups for Yahoo! {{En dash}} Consumer, Regions and Technology.

The Consumer group had three groups: Media, Connections, and Commerce. The customers of this group are the users of Yahoo!.

The Regions group operated three regions: Americas, APAC, and EMEA. The customers of this group are the advertisers of Yahoo!.

The Technology group included Core Platforms, and Central Technology. It provides technology and support to the other two major groups.

The Corporate group (Finance, Legal, and HR) remained unchanged and continued to support the new groups.{{cite web |url=http://allthingsd.com/20120410/its-official-yahoo-reorgs-itself-just-like-we-said-memo-time/ |title=It's Official: Yahoo Reorgs Itself Just Like We Said (Memo Time!) – Kara Swisher – News |publisher=AllThingsD |date=April 10, 2012 |access-date=2012-10-19 |archive-date=December 20, 2012 |archive-url=https://web.archive.org/web/20121220235004/http://allthingsd.com/20120410/its-official-yahoo-reorgs-itself-just-like-we-said-memo-time/ |url-status=live }}{{cite news | url=http://bits.blogs.nytimes.com/2012/04/10/yahoo-c-e-o-hints-at-a-strategy/ | work=The New York Times | first=Nicole | last=Perlroth | title=Yahoo C.E.O. Hints at a Strategy | date=April 10, 2012 | access-date=April 10, 2012 | archive-date=April 11, 2012 | archive-url=https://web.archive.org/web/20120411195130/http://bits.blogs.nytimes.com/2012/04/10/yahoo-c-e-o-hints-at-a-strategy/ | url-status=live }}{{cite web |url=http://www.mercurynews.com/business/ci_20363744/yahoo-ceo-scott-thompsons-memo-employees-outlining-companys |title=Yahoo CEO Scott Thompson's memo to employees outlining the company's reorganization – San Jose Mercury News |date=April 10, 2012 |work=Mercurynews.com |access-date=2012-10-19 |archive-date=October 23, 2014 |archive-url=https://web.archive.org/web/20141023001528/http://www.mercurynews.com/business/ci_20363744/yahoo-ceo-scott-thompsons-memo-employees-outlining-companys |url-status=live }}{{cite news | url=https://www.bloomberg.com/news/2012-04-10/yahoo-ceo-outlines-reorganization-plan-to-revive-growth.html | work=Bloomberg | first=Tom | last=Giles | title=Yahoo CEO Outlines Reorganization Plan to Revive Growth | date=April 10, 2012 | access-date=March 7, 2017 | archive-date=March 8, 2021 | archive-url=https://web.archive.org/web/20210308130036/https://www.bloomberg.com/news/2012-04-10/yahoo-ceo-outlines-reorganization-plan-to-revive-growth.html | url-status=live }}{{cite news | url=https://www.huffingtonpost.com/2012/04/10/new-yahoo_n_1414864.html | work=Huffington Post | first=Catharine | last=Smith | title=Yahoo CEO Sketches Out Major Revamp | date=April 10, 2012 | access-date=February 19, 2020 | archive-date=March 4, 2016 | archive-url=https://web.archive.org/web/20160304090922/http://www.huffingtonpost.com/2012/04/10/new-yahoo_n_1414864.html | url-status=live }}{{cite web |url=http://searchenginewatch.com/article/2166921/Yahoo-Reorg-2012-Search-Avoids-Death-Sentence |title=Yahoo Reorg 2012: Search Avoids Death Sentence – Search Engine Watch (#SEW) |date=April 11, 2012 |publisher=Search Engine Watch |access-date=2012-10-19 |archive-date=May 14, 2012 |archive-url=https://web.archive.org/web/20120514063225/http://searchenginewatch.com/article/2166921/Yahoo-Reorg-2012-Search-Avoids-Death-Sentence |url-status=live }}

On May 3, 2012, news reported that Scott Thompson's biography at Yahoo was incorrect. The CEO's biography stated that he held a dual accounting and computer science degree from Stonehill College, whereas investigation revealed that Thompson's degree was solely in accounting, and not in computer science. The information came from Dan Loeb, founder of Third Point LLC, which held 5.8% of Yahoo! stock, and who had been trying to gain seats on the board of directors of Yahoo!{{cite news | url=https://dealbook.nytimes.com/2012/05/04/hedge-fund-intensifies-attacks-on-yahoo-as-storm-grows-over-padded-resumes/ | work=The New York Times | title=Hedge Fund Intensifies Attack on Yahoo Amid Storm Over Padded Résumés | date=May 4, 2012 | access-date=March 5, 2017 | archive-date=September 29, 2018 | archive-url=https://web.archive.org/web/20180929233517/https://dealbook.nytimes.com/2012/05/04/hedge-fund-intensifies-attacks-on-yahoo-as-storm-grows-over-padded-resumes/ | url-status=live }}{{cite news | url=https://www.washingtonpost.com/business/technology/yahoo-ceo-accused-of-padding-resume-probe-launched/2012/05/04/gIQAHEUI1T_story.html | newspaper=The Washington Post | first=Hayley | last=Tsukayama | title=Yahoo says CEO Scott Thompson does not have computer science degree | date=May 4, 2012 | access-date=August 29, 2017 | archive-date=February 12, 2018 | archive-url=https://web.archive.org/web/20180212142216/https://www.washingtonpost.com/business/technology/yahoo-ceo-accused-of-padding-resume-probe-launched/2012/05/04/gIQAHEUI1T_story.html | url-status=live }}{{cite news |url=http://allthingsd.com/20120503/yahoos-response-on-computer-science-resumegate-inadvertent-error/ |title=Yahoo!s response on computer science resumegate inadvertent error |publisher=AllThingsD |access-date=2012-12-04 |archive-date=May 4, 2012 |archive-url=https://web.archive.org/web/20120504044159/http://allthingsd.com/20120503/yahoos-response-on-computer-science-resumegate-inadvertent-error/ |url-status=live }}

In response to this, Yahoo!'s board of directors formed a three-member committee to review Thompson's academic credentials and the vetting process that preceded his selection as CEO. The review committee's chairman was Alfred Amoroso, who joined Yahoo!'s board in February 2012. The other directors on the panel were John Hayes and Thomas McInerney, who both joined in April 2012. The committee retained Terry Bird as independent counsel.{{cite news | url=https://www.bloomberg.com/news/2012-05-08/yahoo-director-patti-hart-said-to-plan-departure-from-board.html | work=Bloomberg | first=Brian | last=Womack | title=Yahoo's Hart Plans to Exit Board Amid CEO Resume Review | date=May 9, 2012 | access-date=March 7, 2017 | archive-date=March 8, 2021 | archive-url=https://web.archive.org/web/20210308125415/http://www.bloomberg.com/news/2012-05-08/yahoo-director-patti-hart-said-to-plan-departure-from-board.html | url-status=live }}

On May 13, 2012, Scott Thompson was replaced by Ross Levinsohn as the company's interim CEO.{{cite news | url=https://www.bbc.co.uk/news/business-18053577 | work=BBC News | title=Yahoo chief executive Scott Thompson steps down | date=May 14, 2012 | access-date=June 21, 2018 | archive-date=June 18, 2019 | archive-url=https://web.archive.org/web/20190618193201/https://www.bbc.co.uk/news/business-18053577 | url-status=live }} In June 2012, Yahoo! hired former Google director Michael G. Barrett as its chief revenue officer.{{cite web|url=http://investing.businessweek.com/research/stocks/private/person.asp?personId=406576 |title=List of Private Companies Worldwide, Letter – Businessweek |publisher=Investing.businessweek.com |access-date=2012-10-19}}{{dead link|date=April 2023|bot=medic}}{{cbignore|bot=medic}}{{cite news|url=http://timesofindia.indiatimes.com/tech/news/movements/Yahoo-hires-former-Google-director-to-head-ad-revenue/articleshow/14243210.cms |work=The Times of India |title=Yahoo hires former Google director to head ad revenue |url-status=dead |archive-url=https://web.archive.org/web/20120619130613/http://timesofindia.indiatimes.com/tech/news/movements/Yahoo-hires-former-Google-director-to-head-ad-revenue/articleshow/14243210.cms |archive-date=June 19, 2012 }}

File:Doug Imbruce, Co-founder and CEO, with the Qwiki team and Yahoo! CEO Marissa Mayer at the Company’s Sunnyvale HQ, July 2013.jpg

On July 16, 2012, former Google executive and Walmart corporate director Marissa Mayer was named as Yahoo! CEO and President, and youngest CEO of a Fortune 500 company.{{cite web |url=http://postcards.blogs.fortune.cnn.com/2012/07/17/marissa-mayer-timeline/ |title=The Marissa Mayer timeline — Postcards |publisher=Postcards.blogs.fortune.cnn.com |date=2012-07-17 |access-date=2013-03-18 |archive-url=https://web.archive.org/web/20130308130712/http://postcards.blogs.fortune.cnn.com/2012/07/17/marissa-mayer-timeline/ |archive-date=March 8, 2013 |url-status=dead }}

On May 19, 2013, the Wall Street Journal reported that Yahoo's board had approved an all-cash deal to purchase the six-year-old blogging website Tumblr.{{Citation needed|date=November 2021}} The announcement was reported to signify a changing trend in the technology industry, as large corporations like Yahoo, Facebook, and Google acquired start-up Internet companies that generate low amounts of revenue as a way in which to connect with sizeable, fast-growing online communities. The Wall Street Journal stated that the purchase of Tumblr would satisfy the company's need for "a thriving social-networking and communications hub." Yahoo would pay $1.1 billion for Tumblr, and the company's CEO and founder David Karp would remain a large shareholder.{{cite news|title=Yahoo Deal Shows Power Shift|url=https://www.wsj.com/articles/SB10001424127887324787004578493130789235150|access-date=20 May 2013|newspaper=The Wall Street Journal|date=19 May 2013|author=JOANN S. LUBLIN|author2=AMIR EFRATI|author3=SPENCER E. ANTE|archive-date=February 3, 2015|archive-url=https://web.archive.org/web/20150203002523/http://www.wsj.com/articles/SB10001424127887324787004578493130789235150|url-status=live}}

The revamp of the Yahoo-owned photography service Flickr was launched in Times Square, New York, U.S. on May 20, 2013, in an event that was attended by the city's mayor and a large contingency of journalists. Eleven billboards in Times Square advertised the website's new tagline "biggr, spectaculr, wherevr" as part of the launch and Yahoo stated that it would provide Flickr users with a free terabyte of storage. The official announcement of the Tumblr acquisition was also included in the May 20 event.{{cite web|title=Yahoo's marketing masterstroke: a free terabyte of Flickr storage is better than unlimited|url=http://qz.com/86949/yahoos-marketing-masterstroke-a-free-terabyte-of-flickr-storage-is-better-than-unlimited/|work=Quartz|access-date=25 May 2013|author=Zachary M. Seward|date=21 May 2013|archive-date=June 3, 2013|archive-url=https://web.archive.org/web/20130603044446/http://qz.com/86949/yahoos-marketing-masterstroke-a-free-terabyte-of-flickr-storage-is-better-than-unlimited/|url-status=live}}

The media reported on Yahoo!'s interest in the video streaming site Hulu on May 26, 2013. Under Mayer's leadership, Yahoo!'s bid was worth between $600 and $800 million, as a variety of options that consisted of different circumstances were put forward by the company.{{cite web|title=Yahoo's Bid for Hulu in $600M to $800M Range — Even as It Preps Other Big Deals in Mobile and Communications|url=http://allthingsd.com/20130526/yahoos-bid-for-hulu-in-600m-to-800m-range-even-as-it-preps-other-big-deals-in-mobile-and-communications/|work=All Things D|publisher=Dow Jones & Company Inc|access-date=28 May 2013|author=Kara Swisher|date=26 May 2013|archive-date=June 7, 2013|archive-url=https://web.archive.org/web/20130607111656/http://allthingsd.com/20130526/yahoos-bid-for-hulu-in-600m-to-800m-range-even-as-it-preps-other-big-deals-in-mobile-and-communications/|url-status=live}} As of May 28, 2013, Yahoo!'s videos attracted 45 million unique visitors a month, while Hulu had 24 million visitors. The combination of the two audiences would have placed Yahoo! in the second-most popular position after Google and its subsidiary YouTube.{{cite news|title=An $800 million bid for Hulu is safe, boring, and exactly the right move for Yahoo|url=http://qz.com/88314/an-800-million-bid-for-hulu-is-safe-boring-and-exactly-the-right-move-for-yahoo/|access-date=28 May 2013|newspaper=Quartz|date=28 May 2013|author=Christopher Mims|archive-date=June 8, 2013|archive-url=https://web.archive.org/web/20130608020032/http://qz.com/88314/an-800-million-bid-for-hulu-is-safe-boring-and-exactly-the-right-move-for-yahoo/|url-status=live}}

In July 2013, Yahoo Inc acquired Qwiki for $50 million.{{Cite web|url=https://finance.yahoo.com/news/yahoo-acquires-qwiki-inc-154001225.html|title=Yahoo Acquires Qwiki Inc.|website=Yahoo|date=July 3, 2013|language=en-US|access-date=2021-11-01|archive-date=November 1, 2021|archive-url=https://web.archive.org/web/20211101115659/https://finance.yahoo.com/news/yahoo-acquires-qwiki-inc-154001225.html|url-status=live}}

On August 2, 2013, Yahoo Inc announced the acquisition of social web browser concern RockMelt. With the acquisition, the RockMelt team, including the concern's CEO Eric Vishria and CTO Tim Howes became part of Yahoo team. As a result, all the RockMelt apps and existing web services were scheduled to cease on August 31, 2013.{{cite web|title=Yahoo acquires social web browser RockMelt, apps go off from August 31|url=http://techone3.in/yahoo-acquires-social-web-browser-rockmelt-9393/|publisher=TechOne3|access-date=3 August 2013|archive-date=August 6, 2013|archive-url=https://web.archive.org/web/20130806181242/http://techone3.in/yahoo-acquires-social-web-browser-rockmelt-9393/|url-status=live}}

On August 7, 2013, at around midnight EDT, Yahoo! announced that it would be introducing the final version of the new logo on 5 September 2013 at 4:00 a.m. UTC. To mark the occasion, the company launched a "30 days of change" campaign that involved releasing a variation of the logo on each of the 30 days leading up to the revelation date.{{cite news|title=Yahoo is getting a new logo — in a month|url=https://www.usatoday.com/story/tech/2013/08/06/yahoo-is-getting-a-new-logo/2617033/|access-date=24 August 2013|newspaper=USA Today|date=7 August 2013|author=Jon Swartz|archive-date=November 26, 2013|archive-url=https://web.archive.org/web/20131126144328/http://www.usatoday.com/story/tech/2013/08/06/yahoo-is-getting-a-new-logo/2617033/|url-status=live}}{{cite web|title=Kicking off 30 days of change|url=http://yahoo.tumblr.com/post/57582020969/kicking-off-30-days-of-change|work=Yahoo! on Tumblr|publisher=Tumblr|access-date=24 August 2013|author=Kathy Savitt|date=7 August 2013|archive-date=August 9, 2013|archive-url=https://web.archive.org/web/20130809064812/http://yahoo.tumblr.com/post/57582020969/kicking-off-30-days-of-change|url-status=live}}

Data collated by comScore during July 2013 revealed that more people in the U.S. visited Yahoo! websites during the month in comparison to Google websites. The occasion was the first time that Yahoo! outperformed Google since 2011. The data did not incorporate visit statistics for the Yahoo!-owned Tumblr website or mobile phone usage.{{cite news|title=Google overtaken by Yahoo! in US website visitors for first time in two years|url=https://www.theguardian.com/technology/2013/aug/22/yahoo-beats-google-website-visitors?CMP=EMCNEWEML6619I2&et_cid=46382&et_rid=7107573&Linkid=http%3a%2f%2fwww.theguardian.com%2ftechnology%2f2013%2faug%2f22%2fyahoo-beats-google-website-visitors|access-date=24 August 2013|newspaper=The Guardian|date=23 August 2013|author=Juliet Garside|archive-date=March 4, 2016|archive-url=https://web.archive.org/web/20160304110252/http://www.theguardian.com/technology/2013/aug/22/yahoo-beats-google-website-visitors?CMP=EMCNEWEML6619I2&et_cid=46382&et_rid=7107573&Linkid=http://www.theguardian.com/technology/2013/aug/22/yahoo-beats-google-website-visitors|url-status=live}}

On February 11, 2014, Yahoo! acquired social diary company Wander.{{cite news | url=https://techcrunch.com/2014/02/11/yahoo-acquires-social-diary-company-wander-for-over-10m/ | title=Yahoo Acquires Social Diary Company Wander For A Price Over $10M | work=TechCrunch | access-date=February 11, 2014 | archive-date=February 11, 2014 | archive-url=https://web.archive.org/web/20140211210416/http://techcrunch.com/2014/02/11/yahoo-acquires-social-diary-company-wander-for-over-10m/ | url-status=live }}

On February 13, 2014, Yahoo! acquired Distill, a technical recruiting company.{{cite news | url=https://techcrunch.com/2014/02/13/yahoo-distill/ | title=Yahoo Acquires Technical Recruiting Startup Distill | work=TechCrunch | access-date=February 13, 2014 | archive-date=February 14, 2014 | archive-url=https://web.archive.org/web/20140214011632/http://techcrunch.com/2014/02/13/yahoo-distill/ | url-status=live }}

On February 17, 2016, Yahoo! replaced Yahoo! Labs with Yahoo! Research.

On September 22, 2016, Yahoo disclosed a data breach in which hackers stole information associated with at least 500 million user accounts in late 2014.{{cite web | url=https://www.nytimes.com/2016/09/23/technology/yahoo-hackers.html | title=Yahoo Says Hackers Stole Data on 500 Million Users in 2014 | work=New York Times | date=September 22, 2016 | access-date=22 September 2016 | archive-date=September 22, 2016 | archive-url=https://web.archive.org/web/20160922192732/http://www.nytimes.com/2016/09/23/technology/yahoo-hackers.html | url-status=live }} According to the BBC, this was the largest technical breach reported to date.{{cite news |url=https://www.bbc.co.uk/news/world-us-canada-37447016 |title=Yahoo 'state' hackers stole data from 500 million users |publisher=BBC |date=23 September 2016 |access-date=23 September 2016 |archive-date=September 23, 2016 |archive-url=https://web.archive.org/web/20160923002317/http://www.bbc.co.uk/news/world-us-canada-37447016 |url-status=live }} Specific details of material taken include names, email addresses, telephone numbers, encrypted or unencrypted security questions and answers, dates of birth, and encrypted passwords.{{cite news |url=https://www.bbc.co.uk/news/world-us-canada-37447016 |title=Yahoo 'state' hackers stole data from 500 million users |publisher=BBC News |date=September 23, 2016 |access-date=September 23, 2016 |archive-date=September 23, 2016 |archive-url=https://web.archive.org/web/20160923002317/http://www.bbc.co.uk/news/world-us-canada-37447016 |url-status=live }} The breach used manufactured web cookies to falsify login credentials, allowing hackers to gain access to any account without needing a password.{{cite news|title=Yahoo discovered hack leading to major data breach two years before it was disclosed|url=https://www.washingtonpost.com/news/the-switch/wp/2016/11/10/yahoo-discovered-hack-leading-to-major-data-breach-two-years-before-it-was-disclosed/|newspaper=The Washington Post|access-date=10 November 2016|archive-date=November 11, 2016|archive-url=https://web.archive.org/web/20161111002926/https://www.washingtonpost.com/news/the-switch/wp/2016/11/10/yahoo-discovered-hack-leading-to-major-data-breach-two-years-before-it-was-disclosed/|url-status=live}}{{cite news|title=Yahoo knew of 'state-backed' hack in 2014|work=BBC News|date=November 10, 2016|url=https://www.bbc.co.uk/news/technology-37936219|access-date=10 November 2016|archive-date=November 10, 2016|archive-url=https://web.archive.org/web/20161110153256/http://www.bbc.co.uk/news/technology-37936219|url-status=live}}{{cite magazine | url = https://www.wired.com/2016/12/yahoo-hack-billion-users/ | title = Hack Brief: Hackers Breach a Billion Yahoo Accounts. A Billion | first = Lily Hay | last = Newman | date = December 14, 2016 | access-date = December 15, 2016 | magazine = Wired | archive-date = December 15, 2016 | archive-url = https://web.archive.org/web/20161215005048/https://www.wired.com/2016/12/yahoo-hack-billion-users/ | url-status = live }} On December 14, 2016 a separate data breach, occurring earlier around August 2013 was reported. This breach affected over 1 billion user accounts and was considered the largest discovered in the history of the Internet.{{cite web | url = https://www.nytimes.com/2016/12/14/technology/yahoo-hack.html | title = Yahoo Says 1 Billion User Accounts Were Hacked | first = Vindu | last = Goel | date = December 14, 2016 | access-date = December 14, 2016 | work = New York Times | archive-date = December 14, 2016 | archive-url = https://web.archive.org/web/20161214224401/http://www.nytimes.com/2016/12/14/technology/yahoo-hack.html | url-status = live }}

On January 9, 2017, Yahoo! CEO Marissa Mayer announced that she would step down from Yahoo’s board of directors if the company’s $4.5 billion sale to Verizon went through. She also announced that when that deal closed Yahoo! would rename itself to Altaba.{{cite web|last1=Fiegerman|first1=Seth|title=Marissa Mayer to resign from Yahoo board after sale|url=https://money.cnn.com/2017/01/09/technology/yahoo-marissa-mayer-altaba/|publisher=CNNMoney|access-date=5 February 2017|date=9 January 2017|archive-date=September 17, 2020|archive-url=https://web.archive.org/web/20200917142033/https://money.cnn.com/2017/01/09/technology/yahoo-marissa-mayer-altaba/|url-status=live}}{{cite web|last1=Merced|first1=Michael J. De La|title=After Verizon Deal, Yahoo to Become 'Altaba' and Marissa Mayer to Step Down From Board|url=https://www.nytimes.com/2017/01/09/business/dealbook/yahoo-would-become-altaba-after-selling-its-internet-business.html|work=The New York Times|access-date=5 February 2017|date=9 January 2017|archive-date=February 16, 2017|archive-url=https://web.archive.org/web/20170216035417/https://www.nytimes.com/2017/01/09/business/dealbook/yahoo-would-become-altaba-after-selling-its-internet-business.html|url-status=live}}{{cite web|title=Yahoo CEO Marissa Mayer To Resign From Board After Verizon Acquisition|url=http://fortune.com/2017/01/09/yahoo-marissa-mayer-board-verizon-acquisition/|publisher=Fortune|access-date=5 February 2017|archive-date=February 6, 2017|archive-url=https://web.archive.org/web/20170206103512/http://fortune.com/2017/01/09/yahoo-marissa-mayer-board-verizon-acquisition/|url-status=live}}{{cite web|last1=Mascarenhas|first1=Hyacinth|title=Yahoo CEO Marissa Mayer to step down after Verizon deal as remaining business to be named Altaba|url=http://www.ibtimes.co.uk/yahoo-ceo-marissa-mayer-step-down-after-verizon-deal-company-change-name-altaba-1600162|publisher=International Business Times UK|access-date=5 February 2017|date=10 January 2017|archive-date=February 6, 2017|archive-url=https://web.archive.org/web/20170206103922/http://www.ibtimes.co.uk/yahoo-ceo-marissa-mayer-step-down-after-verizon-deal-company-change-name-altaba-1600162|url-status=live}}{{cite web|title=Marissa Mayer is resigning from Yahoo's board|url=http://www.businessinsider.de/marissa-mayer-is-resigning-from-yahoos-board-2017-1|publisher=Business Insider|access-date=5 February 2017|language=en|archive-date=January 12, 2017|archive-url=https://web.archive.org/web/20170112132849/http://www.businessinsider.de/marissa-mayer-is-resigning-from-yahoos-board-2017-1|url-status=dead}}

{{Reflist|2}}

• [https://archive.today/20120712130315/http://docs.yahoo.com/info/misc/history.html The History of Yahoo! – How It All Started ...]

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