Thank God Yahoo didn’t buy Google

In a few years yahoo will vanish completely and it will remain as a case study in the universities under the title of “every possible mistake a tech company could have done”.

The truth is that big tech companies today can’t really innovate after their IPO and in most cases they don’t create more successful products after their first core business, therefore the most important decision is buying other successful companies and integrate them into their business, make it their own business.

Yahoo’s board lack of ability to appoint good leaders, good CEOs, to make the right decisions, made this company eventually being acquired for ~5bn$ to Verizon and give up.


Their biggest lost was definitely to Google, except the fact that they had 2 chances to buy Google and then become a huge successful company, they lost 2 important battles — mail and search, and they didn’t recover from that of course.

Don’t get me wrong, I’m really happy that yahoo didn’t manage to buy Google eventually, it would have been a disaster for the entire world, and I can’t even imagine how Google would look like under Yahoo’s terrible management.

GeoCities, Broadcast, Flickr, Tumblr…

Over the years they wanted of course to buy some successful companies but in terms of ROI none of them was worthy and it turns out to become really bad acquisitions.

*Geocities ($3.6 billion)
* ($5.7 billion)
*Tumblr ($1.1 billion)

The full list:!


Maybe the only smart decision they were doing was buying in 2005 40% of Chinese e-commerce site Alibaba for $1 billion but even then they screw it up by selling more than half of its holdings and now they have only 15%(equals to ~31bn$) which is not part of the Verizon deal.

Marissa Mayer

If you judge her through the results she definitely failed, it seems to me that the reason she brought to yahoo is to find a way to be acquired by Google or Microsoft in a bigger deal but I can’t prove that of course.

IMHO she won’t stay after the acquisition, people might expect from her to join AOL to the Verizon digital division but I think she would take her “profit” and find a new innovative company.


After the AOL acquisition Verizon probably wanted more traffic and more users so it definitely make sense to buy Yahoo for their digital division, the timing was perfect since Yahoo marketCap was low and advertising is a huge business so Verizon can definitely increase their domination in this space for better monetization.


We are all smart of course retro perspective but Yahoo made so many mistakes that it was just a matter of time till they give up and be acquired.

Bottom line is that they didn’t have the right leaders and management to make this company successful and they made terrible acquisitions in their 22 years of operation.