Market Overview

Infographic: The Rise and Fall of Yahoo!


Botched outsourcing, Ponzi scheme accusations, and bad corporate hires are just some of the reasons for Yahoo!'s downfall.

On a day when both of Carol Bartz and Tim Morse are being referred to as “clueless,” it's interesting (if not a little fun) to look back on the rise and fall of Yahoo! (NASDAQ: YHOO).

While this TechCrunch infographic is a too old to contain the latest developments, it perfectly illustrates the problems that the company is facing today.

Take, for example, the shutting of Geocities, which (according to the infographic below) eliminated $3.6 billion from Yahoo!'s bottom line. Most recently, Yahoo! outsourced its shopping content to PriceGrabber, its personals to, and its real estate to Zillow. While this likely gave Yahoo! a new source of ad revenue, you have to wonder: at what cost was this new revenue obtained? If, for example, the contribution margin was greater with Yahoo! Personals than with the ad dollars acquired from, then Yahoo! is worse off than before.

That, however, pales in comparison to the claim made by Paul Graham, who said that Yahoo! was the “beneficiary of a de facto Ponzi scheme.”


Follow me @LouisBedigian

Posted-In: Carol Bartz Paul Graham Ponzi Scheme PriceGrabber Tim Morse Yahoo!Tech Best of Benzinga


Related Articles (YHOO)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

Trading Places International Subsidiary Wins Whistler Management Contracts

Copper Continues To Show Risk On