Yahoo _Yahoo_ Empire by fdjerue7eeu


									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,
However, SEQUOLA partner MIKE MORITZ it was not clear Where is
Yahoo's opportunities. Jerry Yang to their model as
"free services available online in the WEB", but never
invest in venture funds are still any free product. Yahoo'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 "Yahoo"; and they have sufficient
strength to buy Yahoo, the "competitors."
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 "free services available online in the WEB", then
it is how to maintain their daily work?
Yahoo to provide "free service" 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'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'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'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's
page views a few days the site was 144 million times; to 12 months, has
reached 167 million times.
4, into the "Death Valley"
According to the theory of venture capital, entrepreneur to be most
valuable in raising "seed capital", "angel
investment", 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 "death
Yahoo'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 "Death Valley" - the Nasdaq'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's fast growth
has played a crucial second push to pass new the establishment of the
company's growth in "Death Valley" 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'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's stock price rose 100%. In 1998,
Yahoo'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, "Yahoo's rules"
Yahoo's stock price soaring trend that the traditional
"price earnings ratio" can not explain it, because,
until 1997, Yahoo's revenue was negative. How to explain the
departure from the stock price and earnings?
UPSIDE magazine's editor RICHARD L. BRAND called
"Yahoo's rules", that as long as the
"Yahoo continues to control the unprecedented price / earnings
ratio, the Internet will continue to invest huge money to
place." In other words, in the Internet age, a measure of stock
price no longer is the company's earnings as a reference, but in
reference to his income. A company's revenue growth has indeed
reflect a company'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,
"Yahoo's rules" to some extent reflect the
actual situation .
Comment: (Doctor of Business Administration: Zhu Huaiqi)
Yahoo'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
Yahoo'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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