One of the most earliest search engine and a company tha twas valued at $120 Billion, Yahoo Inc, just sold its core internet biz to Verizon. The deal is worth a whopping $4.8 Billion, but considering it was a huge company of the 90s, and way before LinkedIn, the price is not at all justified.

We know that Yahoo was not doing so well. Early internet adopters still have Ymail and email IDs although their primary search was replaced quickly by a new page rank alog, now known as Google.

What made Yahoo Sell Core Business?

The reason is being unable to withstand competition and sustain the times. When Google just started, Yahoo was huge, but it was not performing well since 2005. Google pretty much kicked ass in every product and Yahoo could not keep up. It was Marissa Mayer’s $55 Million exit that signalled all the wrong things going on inside Yahoo, but not bouncing back clearly tells us lack of leader ship at Yahoo.
Yahoo Sale
We cannot comment on the internal decisions and future of Yahoo with Verizon, but it appears that, Verizon is going to use it and try to grow its own business. We have seen what new business and faster growing ideas like Google and Facebook can do to your old business. Even if you try to reinvent, it is getting harder for companies to gain trust these days. The same thing happened with Nokia too. They also said they did nothing wrong. But Yahoo had its bad share of top level mismanagement woes. We hope others in the Valley learn from this sale and try to ensure that their $120 Billion business never devalues to just $4.8 Billion

There is no official comment on the deal from Yahoo and Verizon, but Yahoo Sale is final.

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