During the internet boom Yahoo made one of the biggest dot.com purchases ever with the $5.7 billion acquisition of Broadcast.com in July 1999. Broadcast.com was an online audio service created by Mark Cuban to stream live audio coverage of his favorite sporting events. Yahoo’s purchase of Broadcast.com made Cuban an internet legend, a billionaire and a future owner of the NBA’s Dallas Mavericks. At the time of the purchase Broadcast.com was a publicly traded company (BCST) who saw its stock rise over $7 to $125 after the announcement.
Yahoo’s first acquisition was for Net Controls in September 1997 for $1.4 million. Yahoo acquired ViaWeb, a developer of web commerce tools, for $49 million in stock in June 1998. In October 1998 Yahoo began its quest for free email service with the purchase of Four11 (Four11 offered a free email service via a product called RocketMail) for $92 million in stock. Today Yahoo’s free email service accounts for 40% of its overall traffic – the largest driver of traffic to the Yahoo network. Yahoo announced its acquisition of Geocities in January 1999 for $3.6 billion.
Yahoo jumped into the marketing world with the purchase of Yoyodyne in October 1998 for $29.6 million in stock. Yoyodyne allowed Yahoo to collect user data and act as an intermediary between its users and commerce clients. Yahoo purchased its popular Launch music site with its acquisition of Launch Media in June 2001 for $12 million. In December 2001 Yahoo purchased the online job search company HotJobs for approximately $436 million. Inktomi was purchased in December 2002 for $235 million followed by Overture in July 2003 for $1.63 billion. In April 2004 Yahoo purchased Kelkoo, a European comparison shopping site, for $579 million.
Tom O'Keefe is an internet business consultant and the founder of Research Connect, Inc. a market research database. O'Keefe works with small businesses and start-ups to help develop an affordable and effective online strategy to maximize traffic and exposure via search engine optimization , internet marketing and web development.
For a website evaluation of your site please contact O'Keefe at 617-947-8071 or via tom[at]tomokeefe.com.
For an extensive list (in addition to Yahoo) of acquisitions in the internet sector please visit Internet Companies