Yahoo! - How It All Started...

Yahoo! began as a student hobby and evolved into a global brand that has changed the way people communicate with each other, find and access information and purchase things. The two founders of Yahoo!, David Filo and Jerry Yang, Ph.D. candidates in Electrical Engineering at Stanford University, started their guide in a campus trailer in February 1994 as a way to keep track of their personal interests on the Internet. Before long they were spending more time on their home-brewed lists of favorite links than on their doctoral dissertations. Eventually, Jerry and David's lists became too long and unwieldy, and they broke them out into categories. When the categories became too full, they developed subcategories ... and the core concept behind Yahoo! was born. The Web site started out as "Jerry and David's Guide to the World Wide Web" but eventually received a new moniker with the help of a dictionary. The name Yahoo! is an acronym for "Yet Another Hierarchical Officious Oracle," but Filo and Yang insist they selected the name because they liked the general definition of a yahoo: "rude, unsophisticated, uncouth." Yahoo! itself first resided on Yang's student workstation, "Akebono," while the software was lodged on Filo's computer, "Konishiki" - both named after legendary sumo wrestlers. Jerry and David soon found they were not alone in wanting a single place to find useful Web sites. Before long, hundreds of people were accessing their guide from well beyond the Stanford trailer. Word spread from friends to what quickly became a significant, loyal audience throughout the closely-knit Internet community. Yahoo! celebrated its first million-hit day in the fall of 1994, translating to almost 100 thousand unique visitors. Due to the torrent of traffic and enthusiastic reception Yahoo! was receiving, the founders knew they had a potential business on their hands. In March 1995, the pair incorporated the business and met with dozens of Silicon Valley venture capitalists. They eventually came across Sequoia Capital, the well-regarded firm whose most successful investments included Apple Computer, Atari, Oracle and Cisco Systems. They agreed to fund Yahoo! in April 1995 with an initial investment of nearly $2 million. Realizing their new company had the potential to grow quickly, Jerry and David began to shop for a management team. They hired Tim Koogle, a veteran of Motorola and an alumnus of the Stanford engineering department, as chief executive officer and Jeffrey Mallett, founder of Novell's WordPerfect consumer division, as chief operating officer. They secured a second round of funding in Fall 1995 from investors Reuters Ltd. and Softbank. Yahoo! launched a highly-successful IPO in April 1996 with a total of 49 employees. Today, Yahoo! Inc. is a leading global Internet communications, commerce and media company that offers a comprehensive branded network of services to more than 345 million individuals each month worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach. Yahoo! is the No. 1 Internet brand globally and reaches the largest audience worldwide. The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients. These services include Corporate Yahoo!, a popular customized enterprise portal solution; audio and video streaming; store hosting and management; and Web site tools and services. The company's global Web network includes 25 World properties. Headquartered in Sunnyvale, Calif., Yahoo! has offices in Europe, Asia, Latin America, Australia, Canada and the United States.

Search Engine War!

Searching the Web on a mobile phone has been a lot like getting online via dial-up modem circa 1995: slow, tedious and not terribly useful. Typing on tiny buttons, squinting at a list of links and clicking through to a page that won’t display properly is enough to test anyone’s patience.

But that is beginning to change. Google, Microsoft and Yahoo have all trained their sights on cellphones, which they see as the next great battleground in the Internet search wars. They have thrown tens of millions of dollars and armies of programmers at the problem, seeking to develop tools that people on the move can actually use.

In recent months, the three search giants have introduced a new breed of search services that emphasize quick answers to urgent questions: Where is the best local pizzeria? How did the Yankees do against the A’s? What’s the fastest way to get to the airport?

The services are beginning to carry small ads related to searches like those that have turned desktop Internet search into a gold mine.

“The biggest growth areas are clearly going to be in the mobile space,” Eric E. Schmidt, chief executive of Google, said when asked about new opportunities at a conference here this week. In case his point wasn’t clear, Mr. Schmidt drove it home: “Mobile, mobile, mobile.”

The new offerings from the search companies are just the beginning. Search services that pinpoint a phone’s location using the Global Positioning System or that accept voice commands are coming out of the labs. Google has gone so far as to build a prototype phone with its own software inside, according to one person who has seen it.

But between the search giants and phone users stand some powerful gatekeepers — cellphone carriers like Cingular, Sprint and Verizon. On the PC, Web surfers can easily go to the search engine of their choice, but this takes longer on a cellphone. Carriers have the ability to dictate which search engine is easy to access and which is not through placement in their phones’ menus.

“Search will be even more of a choke point on the mobile device than on the PC because navigation is so hard,” said Marco Boerries, the senior vice president in charge of Yahoo’s wireless efforts.

After spending billions of dollars building wireless networks, building relationships with consumers and subsidizing the cost of phones, the last thing carriers want is to miss out on profits from the mobile search business. By and large, they have been eyeing the major search engines with a bit of foreboding.

“In the U.S., the carriers have complete authority over what happens on the phone,” said Sam Jadallah, a venture capitalist who has invested in mobile phone technology start-ups. For the nation’s wireless carriers, Google, Yahoo and Microsoft “are much bigger threats than they are partners,” he added.

The tension between the two sides is reflected in the scarcity of major alliances between carriers and big-name search companies. Among the big American cellphone operators, only Sprint has a wide-ranging partnership with a top search provider, Microsoft. Most other large carriers are working with small technology companies that offer generic search services, which the carriers can stamp with their own brand.