Yahoo (Yahoo) Empire Yahoo (Yahoo) Empire First, creativity is the key Like the computer age, like many companies, Yahoo began a later proved to be a good idea, the idea first became a hobby, and later became entrepreneurs go all out to explore the cause. April 1994, and Yang Tai Wei Feile - the two founders of Yahoo - a way to leave out that they are pursuing a doctoral degree in electrical engineering at Stanford University. Because they find, track all Internet sites and keep them the love they need to devote more time and effort. They follow a long list of growing concern about the website, more and more wide range. In the end, they are the main energy concentrated on Yahoo. They will transform Yahoo into a popular database to meet the increasingly close through thousands of Internet worms use their service needs. They have been popular software to help develop a more effective search for worms, identification and edit all kinds of information stored on the Internet. Second, venture capital for the first time to promote The establishment of popular databases, popular software development, we need financial support. How they address each enterprise will encounter during the start-up funding problems? Innovative high-tech and new incubator - venture capital for their strong support. At that time the industry background: NETSCAPE released its first version of the beta version of the browser; first advertise the WEB site also emerged; the media began extensive coverage to the Internet Xian Xiang; venture capital funds have also got wind of it, rushed WEB site. Reading business management at Harvard University is holding an old classmate to help write the plan, Jerry Yang and the Great Victoria began to keep access to venture capitalists and venture capital firms. Finally, they found a SEQUOLA investment company, SEQUOLA invest several hundred high-tech companies, including Apple, Attali database company, ORACLE, CISCO. However, SEQUOLA partner MIKE MORITZ it was not clear Where is Yahoo&#39;s opportunities. Jerry Yang to their model as &quot;free services available online in the WEB&quot;, but never invest in venture funds are still any free product. Yahoo&#39;s lack of experience in business management personnel, the name has not been so loud. Fortunately, MIKE quickly recognized as an emerging media, Yahoo represents the tremendous business opportunities. Including MCI, MICROSOFT, NETSCAPE and other investors have also found a Yahoo. America Online (AOL) would like to buy Yahoo. Them: if Yahoo agreed to be acquired, the entrepreneur will soon become a millionaire; if they do not agree, then, AOL has threatened: Ya, and AOL will have to face the front of confrontation. Indeed, AOL has sufficient strength to build their own &quot;Yahoo&quot;; and they have sufficient strength to buy Yahoo, the &quot;competitors.&quot; NETSCAPE also put forward their own proposals: the stock exchange, and NETSCAPE upcoming stock, compared to a higher value of AOL stock. Yang and large dimension rejected AOL and NETSCAPE, because they want to create their own business. April 1995, SEQUOLA the co-operation with Yahoo, the former on the latter valuation 4 million U.S. dollars, and to this assessment is based investment funds. Yahoo began their arduous own. Third, rapid growth of Yahoo Yahoo &quot;free services available online in the WEB&quot;, then it is how to maintain their daily work? Yahoo to provide &quot;free service&quot; object refers to the ordinary use of the Internet users. And Yahoo use its wide range of views and page visits to attract businesses to advertise on its website (in December 1998, Yahoo&#39;s page hits reached on 167 million times), and Yahoo in order to maintain its operation cost is also on advertising revenue from it. In 1996, only with SOFTBANK and its subsidiaries signed advertising contracts let Yahoo be 2.075 million U.S. dollars in revenue. Yahoo net income on realization of the 19.073 million U.S. dollars, 1.363 million U.S. dollars in 1995 to 14-fold. Yahoo&#39;s net income in 1997 70.45 million U.S. dollars realized in 1998, achieved 203 million. Just four years, its net income has increased by nearly 200 times. Currently, Yahoo&#39;s different language website has been extended to 15 countries, Yahoo also in 1998, the Chinese Web site officially opened the fourth quarter, Yahoo is still in Asia, Europe, Canada has its own offices. According to statistics, in September 1998, Yahoo&#39;s page views a few days the site was 144 million times; to 12 months, has reached 167 million times. 4, into the &quot;Death Valley&quot; According to the theory of venture capital, entrepreneur to be most valuable in raising &quot;seed capital&quot;, &quot;angel investment&quot;, to the creation of the company, developing technology, and even access to a series of successful new products come out, even after beginning to receive income, also face the risk of failure, because to start new businesses where often only a technical idea, make it a reality the product has to go through a lot of experiments; and development success, as a new technology and products , the company must promotional to consumers, leading consumer attitudes and consumption patterns, in fact, for a developed market in the process of developing new industries. At that stage, emerging enterprises was extremely costly. One hour, lose the whole game. There are many entrepreneurs cut down, the start-up companies sink like a stone at that stage, so it was again the stage, known as corporate &quot;death valley.&quot; Yahoo&#39;s growth process through this same stage. And Yahoo corresponding to the extraordinary development of its high input costs. Yahoo costs generally include advertising expenses, product development costs and administrative expenses. Among them, the largest advertising expenditure in 1995 was 12.6 million in 1996 to reach 3.801 million U.S. dollars. Into the second quarter of 1998, a one-time cost of technology development, mergers and VLA RREB company and the fourth quarter, the company mergers YOYODYNE and HYPERPARALLEL total cost reached 15 million U.S. dollars, plus the amortization of intangible assets, the actual net income dropped to 2559 in 1998 million, compared with net income decreased 87.39%. The costs into account, the actual 1997 net loss of 25.52 million U.S. dollars (one-time cost of investment in 1997 has reached 25.1 million U.S. dollars). High cost of inputs and Yahoo have to make expenditures often busy with raising funds. Five, out of the &quot;Death Valley&quot; - the Nasdaq&#39;s second promotion Yahoo stock is publicly traded on NASDAQ market, to raise the huge sum of money, a great solution to the Yahoo in its growing financial difficulties encountered in the process, as Yahoo&#39;s fast growth has played a crucial second push to pass new the establishment of the company&#39;s growth in &quot;Death Valley&quot; stage. April 12, 1996, Yahoo in the U.S. NASDAQ market, the price of 13 dollars per share public offering of 260 million shares, a total of 33.8 million U.S. dollars to raise funds. To the funds based on the size of Yahoo&#39;s continued expansion and business gradually into the black. 1996, the company loss of 9 cents per share, earnings per share in 1997 to zero (if we consider a one-time investment and the amortization of intangible assets, compared to 29 dollars per share) in 1998, earnings per share of 45 cents (if we consider a one-off input and amortization of intangible assets, compared with earnings of 23 U.S. dollars). AMAZON companies with similar stock INTERNET Yahoo as an important one plate, the momentum has been maintained continuously soaring. In June 1996 within a month, Yahoo&#39;s stock price rose 100%. In 1998, Yahoo&#39;s shares rose to 10 times the initial listing, and this price includes a number of split shares: June 29, 1997 the two get one stock split, July 8, 1998 to send a share of a segmentation. January 12, 1999, Yahoo has once again announced a stock split to send one. March 22, 1999, the average price of Yahoo stock to reach 179 U.S. dollars. 6, NASDAQ market, &quot;Yahoo&#39;s rules&quot; Yahoo&#39;s stock price soaring trend that the traditional &quot;price earnings ratio&quot; can not explain it, because, until 1997, Yahoo&#39;s revenue was negative. How to explain the departure from the stock price and earnings? UPSIDE magazine&#39;s editor RICHARD L. BRAND called &quot;Yahoo&#39;s rules&quot;, that as long as the &quot;Yahoo continues to control the unprecedented price / earnings ratio, the Internet will continue to invest huge money to place.&quot; In other words, in the Internet age, a measure of stock price no longer is the company&#39;s earnings as a reference, but in reference to his income. A company&#39;s revenue growth has indeed reflect a company&#39;s growth capacity and potential, from this perspective, taking into account the new technology will be on economic, social and cultural production of the full impact, &quot;Yahoo&#39;s rules&quot; to some extent reflect the actual situation . Comment: (Doctor of Business Administration: Zhu Huaiqi) Yahoo&#39;s growth, from which we can clearly see the new investment system - venture capital and the second board market - a market transformation of a high-tech boost. The root of everything, in fact, just a flash of thought, put into effect, created a new age of electronic commerce hero. In this revolution, the conservative and rigid constraints can develop, or even death. Yahoo&#39;s rapid development, and even the new economy has brought new rules, it is worth pondering. Domestic business owners to do the traditional acceptance of new tools in the key is to change the concept of inertia to overcome their behavior. ?
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