4.4.3 Sued in US court for outing Chinese dissident Wang Xiaoning

Wang Xiaoning is a Chinese dissident from Shenyang who was arrested by authorities of the People's Republic of China for publishing controversial material online.
In 2000 and 2001, Wang, who was an engineer by profession, posted electronic journals in a Yahoo! group calling for democratic reform and an end to single-party rule. He was arrested in September 2002 after Yahoo! assisted Chinese authorities by providing information. In September 2003, Wang was convicted of charges of "incitement to subvert state power" and sentenced to ten years in prison.
On April 18, 2007, Xiaoning's wife Yu Ling sued Yahoo! under human rights laws in federal court in San Francisco, California, United States.[95] Wang Xiaoning is named as a plaintiff in the Yahoo! suit, which was filed with help from the World Organization for Human Rights USA. "Yahoo! is guilty of 'an act of corporate irresponsibility,'" said Morton Sklar, executive director of the group. "Yahoo! had reason to know that if they provided China with identification information that those individuals would be arrested."
Yahoo!'s decision to assist China's authoritarian government came as part of a policy of reconciling its services with the Chinese government's policies. This came after China blocked Yahoo! services for a time. As reported in The Washington Post and many media sources:
The suit says that in 2001, Wang was using a Yahoo! e-mail account to post anonymous writings to an Internet mailing list. The suit alleges that Yahoo!, under pressure from the Chinese government, blocked that account. Wang set up a new account via Yahoo! and began sending material again; the suit alleges that Yahoo! gave the government information that allowed it to identify and arrest Wang in September 2002. The suit says prosecutors in the Chinese courts cited Yahoo!'s cooperation.
Human rights organizations groups are basing their case on a 217-year-old U.S. law to punish corporations for human rights violations abroad, an effort the Bush administration has opposed:
In recent years, activists working with overseas plaintiffs have sued roughly two dozen businesses under the Alien Tort Statute, which the activists say grants jurisdiction to American courts over acts abroad that violate international norms. Written by the Founding Fathers in 1789 for a different purpose, the law was rarely invoked until the 1980s.
On August 28, 2007, the World Organization for Human Rights sued Yahoo! for allegedly passing information (email and IP address) with the Chinese government that caused the arrests of writers and dissidents. The lawsuit was filed in San Francisco for journalists, Shi Tao, and Wang Xiaoning. Yahoo! stated that it supported privacy and free expression for it worked with other technology companies to solve human rights concerns.
On November 6, 2007, the US congressional panel criticized Yahoo! for not giving full details to the House Foreign Affairs Committee the previous year, stating it had been "at best inexcusably negligent" and at worst "deceptive

4.4.2Li Zhi

Criticism of Yahoo! intensified in February 2006 when Reporters Without Borders released Chinese court documents stating that Yahoo! aided Chinese authorities in the case of dissident Li Zhi. In December 2003 Li Zhi was sentenced to 8 years imprisonment for "inciting subversion".

4.4.1 Imprisonment of Chinese dissidents(Shi Tao)

Main article: Shi Tao
In September 2005, Reporters Without Borders reported the following story. In April 2005, Shi Tao, a journalist working for a Chinese newspaper, was sentenced to 10 years in prison by the Changsha Intermediate People's Court of Hunan Province, China (First trial case no. 29), for "providing state secrets to foreign entities". The "secrets" were a brief list of censorship orders he sent from a Yahoo! Mail account to the Asia Democracy Forum before the anniversary of the Tiananmen Square Incident.
The verdict as published by the Chinese government stated the following. Shi Tao had sent the email through an anonymous Yahoo! account. Yahoo! Holdings (the Hong Kong subsidiary of Yahoo) told the Chinese government that the IP address used to send the email was registered by the Hunan newspaper that Shi Tao worked for. Police went straight to his offices and picked him up.
In February 2006, Yahoo! General Counsel submitted a statement to the U.S. Congress in which Yahoo! denied knowing the true nature of the case against Shi Tao. In April 2006, Yahoo! Holdings (Hong Kong) was investigated by Hong Kong's Privacy Commissioner for Personal Data.
On 2 June 2006, the union representing journalists in the UK and Ireland (National Union of Journalists) called on its 40,000 members to boycott all Yahoo! Inc. products and services to protest the Internet company's reported actions in China.
In July 2007, evidence surfaced detailing the warrant which the Chinese authorities sent to Yahoo! officials, highlighting "State Secrets" as the charge against Shi Tao. The warrant requests "Email account registration information for huoyan1989@yahoo.com.cn, all login times, corresponding IP addresses, and relevant email content from February 22, 2004 to present."[90][91][92] Analyst reports and human rights organizations have said that this evidence directly contradicts Yahoo!'s testimony before the U.S. Congress in February 2006.
Yahoo! contends it must respect the laws of governments in jurisdictions where it is operating.
Li Zhi

4.4 Work in the People's Republic of China

Yahoo!, along with Google China, Microsoft, Cisco Systems, AOL, Skype, Nortel and others, has cooperated with the Chinese government in implementing a system of internet censorship in mainland China.
Unlike Google or Microsoft, which keep confidential records of its users outside mainland China, Yahoo! stated that the company will not protect the privacy and confidentiality of its Chinese customers from the authorities.
Human rights advocates such as Human Rights Watch and media groups such as Reporters Without Borders state that it is "ironic that companies whose existence depends on freedom of information and expression have taken on the role of censor

4.3 Adware and spyware

Yahoo! has also been criticized for providing ads via the Yahoo ad network to companies who display them through spyware and adware which display on-screen pop-ups, generated from adware that a user may have installed on their computer without realizing it, sometimes by accepting online offers to download software to fix computer clocks or improve computer security, add browser enhancements, etc. As an example, users who have allowed their machine to become infected with spyware will see advertising pop-ups generated from advertising distributor Walnut Ventures, who had a direct partnership with Direct Revenue

4.2 Yahoo! paid inclusion controversy

n March 2004, Yahoo! launched a paid inclusion program whereby commercial websites are guaranteed listings on the Yahoo! search engine after payment.[80] This scheme is lucrative, but has proved unpopular both with website marketers (who are reluctant to pay), and the public (who are unhappy about the paid-for listings being indistinguishable from other search results).[81] As of October 2006, Paid Inclusion doesn't guarantee any commercial listing, it only helps the paid inclusion customers, by crawling their site more often and by providing some statistics on the searches that led to the page and some additional smart links (provided by customers as feeds) below the actual url.

4 Criticism and controversy

4.1 Nazi memorabilia controversy
In 2000, Yahoo! was taken to court in France by parties seeking to prevent French citizens from purchasing memorabilia relating to the Nazi Party. Yahoo! France had already instituted policies preventing the sale of Nazi memorabilia on its site, and prohibiting Nazi-based discussions on its message boards, but the parties sought to have Yahoo! introduce censorship technology to block French citizens from accessing similar material on Yahoo! websites in countries where local laws permitted Nazi related auctions/discussion

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14 1 Criticism and controversy

Nazi memorabilia controversy

For more details on this topic, see LICRA v. Yahoo!.
In 2000, Yahoo! was taken to court in France by parties seeking to prevent French citizens from purchasing memorabilia relating to the Nazi Party. Yahoo! France had already instituted policies preventing the sale of Nazi memorabilia on its site, and prohibiting Nazi-based discussions on its message boards, but the parties sought to have Yahoo! introduce censorship technology to block French citizens from accessing similar material on Yahoo! websites in countries where local laws permitted Nazi related auctions/discussions

13 Revenue model

About 88% of total revenues for the fiscal year 2006 came from marketing services. The largest segment of it comes from search advertising, where advertisers bid for search terms to display their ads on the search results, on average Yahoo! makes 2.5 cents to 3 cents from each search. With the new search advertising system "Panama" Yahoo! aims to increase revenue generated from search.[77]
Other forms of advertising which bring in revenue for Yahoo! include display and contextual advertising.
Working with comScore, The New York Times found that Yahoo! is able to collect far more data about Web users than its competitors from its Web sites and its advertising network. By one measure, on average Yahoo! had the potential in December 2007 to build a profile of 2,500 records per month about each of its visitors.[78]

2.12 Yahoo! Meme

Yahoo! Meme is a beta social service, similar to the popular social networking site Twitter.

2.11 Yahoo! BOSS

Yahoo! Search BOSS is a new service that allows developers to build search applications based on Yahoo!'s search technology.[75] Early Partners in the program include Hakia, Me.dium, Delver, Daylife and Yebol

2.10 Yahoo! Next

Yahoo! Next is an incubation ground for future Yahoo! technologies currently in their beta testing phase. It contains forums for Yahoo! users to give feedback to assist in the development of these future Yahoo! technologies. it was created by Jerry Page and David Shin.

2.9Advertising

Yahoo! Search Marketing provides services such as Sponsored Search, Local Advertising, and Product/Travel/Directory Submit that let different businesses advertise their products and services on the Yahoo! network. Yahoo! Publisher Network is an advertising tool for online publishers to place advertisements relevant to their content to monetize their websites.
Yahoo! launched its new Internet advertisement sales system on February 5, 2007 called Panama. It allows advertisers to bid for search terms based on their popularity to display their ads on search results pages. The system takes bids, ad quality, click-through rates and other factors into consideration in determining how ads are ranked on search results pages. Through Panama, Yahoo! aims to provide more relevant search results to users, a better overall experience, as well as increase monetization—to earn more from the ads it shows.
On April 7, 2008, Yahoo! announced APT from Yahoo!, which was originally called AMP! from Yahoo![72], an online advertising management platform.[73] The platform seeks to simplify advertising sales by unifying buyer and seller markets. The service was launched in September 2008

2.8Small business

Yahoo! provides services such as Yahoo! Domains, Yahoo! Web Hosting, Yahoo! Merchant Solutions, Yahoo! Business Email, and Yahoo! Store to small business owners and professionals allowing them to build their own online stores using Yahoo!'s tools.
Yahoo! also offers HotJobs to help recruiters find the talent they seek

2.7Commerce

Yahoo! offers commerce services such as Yahoo! Shopping, Yahoo! Autos, Yahoo! Real Estate and Yahoo! Travel, which enables users to gather relevant information and make commercial transactions and purchases online. In addition, Yahoo! offers an e-commerce platform called Yahoo! Merchant Solutions (also known as Yahoo! Store) and hosts more Top 500 internet retailers than any other hosted e-commerce solution. Yahoo! Auctions were discontinued in 2007 except for Asia

2.6 oneSearch

Yahoo! introduced its Internet search system, called oneSearch, developed for mobile phones on March 20, 2007. The company's officials stated that in distinction from ordinary Web searches, Yahoo!'s new service presents a list of actual information, which may include: news headlines, images from Yahoo!'s Flickr photos site, business listings, local weather and links to other sites. Instead of showing only, for example, popular movies or some critical reviews, oneSearch lists local theaters that at the moment are playing a certain movie, user ratings and news headlines regarding the movie. A zip code or city name is required for Yahoo! oneSearch to start delivering local search results.
The results of a Web search are listed on a single page and are prioritized into categories. The list of results is based on calculations that Yahoo! computers make on certain information the user is seeking.
Yahoo! has announced they also plan to adopt Novarra's mobile content transcoding service for the oneSearch platform

2.5Mobile

Yahoo! Mobile includes services for on-the-go messaging, such as email, instant messaging, and mobile blogging; information, such as search and alerts; and fun and games, including ring tones, mobile games, and Yahoo! Photos for camera phones. These require software to be installed on the user's device.

2.4Co-branded Internet services

Yahoo! has developed partnerships with different broadband providers such as AT&T (via BellSouth & SBC), Verizon Communications, Rogers Communications and British Telecom, offering a range of free and premium Yahoo! content and services to subscribers.

2.3Content

Yahoo! partners with hundreds of premier content providers in products such as Yahoo! Sports, Yahoo! Finance, Yahoo! Music, Yahoo! Movies, Yahoo! News, Yahoo! Answers and Yahoo! Games to provide media contents and news. Yahoo! also provides a personalization service, My Yahoo!, which enables users to collect their favorite Yahoo! features, content feeds, and information into a single page.
On March 31, 2008 Yahoo! launched web portal shine.yahoo.com another Yahoo! property dedicated to women between the ages of 25 and 54. Yahoo! called this demographic underserved by current Yahoo! properties.

Communication

Yahoo! provides internet communication services such as Yahoo! Messenger and Yahoo! Mail, the largest e-mail service in the world, with almost half the market share.[64] In March 2007, Yahoo! announced that their e-mail service would offer unlimited storage beginning May 2007.
Yahoo! Mail premium service MailPlus provides additional functionality including POP/SMTP access to Yahoo! Mail accounts, although such functionality is already provided for free by Yahoo! competitor Gmail. Some MailPlus subscribers have reported difficulties in successfully cancelling their subscriptions, which are automatically renewed and paid by credit card. Although other areas of the MailPlus web interface appear to function correctly, a blank page appears when users select "cancel service" from the list of options to manage the service. It is unknown whether this is an accidental oversight by Yahoo! programmers, or a deliberate attempt to retain MailPlus subscription cash flows.
Yahoo! also offers social networking services and user-generated content in products such as My Web, Yahoo! Personals, Yahoo! 360°, Delicious, Flickr, and Yahoo! Buzz.
Yahoo! Photos was shut down on September 20, 2007 in favor of Flickr. On October 16, 2007, Yahoo! announced that they will no longer provide support or perform bug fixes on Yahoo! 360° as they intend to abandon it in early 2008 in favor of a "universal profile" that will be similar to their Mash experimental system.

2.1Storing personal information

As of December 11, 2007, Google and Microsoft's Bing "store personal information for 18 months" and Yahoo! and AOL (Time Warner) "retain search requests for 13 months".

2.Products and services

Yahoo! provides a wide array of internet services that cater to most online activities. It operates the web portal http://www.yahoo.com which provides content including the latest news, entertainment, and sports information, and gives users quick access to other Yahoo! services like Yahoo! Mail, Yahoo! Maps, Yahoo! Finance, Yahoo! Groups and Yahoo! Messenger. The majority of the product offerings are available globally in more than 20 languages.

Welcome to Facebook

Welcome to Facebook

Welcome to Facebook

Welcome to Facebook

1.3.2Change in direction under Carol Bartz

Yahoo! has tried to change its direction since chief executive Carol Bartz replaced co-founder Jerry Yang in January 2009.
In July, Microsoft and Yahoo! agreed to a deal that will see Yahoo!'s websites use both Microsoft's search technology and search advertising. Yahoo! in turn will become the sales team for banner advertising for both companies. While Microsoft will provide algorithmic search results, Yahoo! will control the presentation and personalization of results for searches on its pages. This deal is not expected to be finalised before spring 2010 and is awaiting regulatory approval.
On July 21, 2009, Yahoo! launched a new version of its front page, called Metro. The new page allows users to customize it through the prominent "My Favorites" panel on the left side and integrate third-party web services and launch them within one page. Such applications include pages of Netflix, E-trade, Facebook, and other sites

1.3.1 Acquisition attempt by Microsoft

Microsoft and Yahoo! pursued merger discussions in 2005, 2006, and 2007, that were all ultimately unsuccessful. At the time, analysts were skeptical about the wisdom of a business combination.
On February 1, 2008, after its friendly takeover offer was rebuffed by Yahoo!, Microsoft made an unsolicited takeover bid to buy Yahoo! for US$44.6 billion in cash and stock. Days later, Yahoo! considered alternatives to the merger with Microsoft, including a merger with internet giant Google[41] or a potential transaction with News Corp.[42] However, on February 11, 2008, Yahoo! decided to reject Microsoft's offer as "substantially undervaluing" Yahoo!'s brand, audience, investments, and growth prospects.] As of February 22, two Detroit based pension companies have sued Yahoo! and their board of directors for breaching their duty to shareholders by opposing Microsoft's takeover bid and pursuing "value destructive" third-party deals.[44][dead link] In early March, Google CEO Eric Schmidt went on record saying that he was concerned that a potential MICROSOFT-Yahoo! merger might hurt the Internet by compromising its openness. The value of Microsoft's cash and stock offer declined with Microsoft's stock price, falling to $42.2 billion by April 4.[46] On April 5, Microsoft CEO Steve Ballmer sent a letter to Yahoo!'s board of directors stating that if within three weeks they had not accepted the deal, Microsoft would approach shareholders directly in hopes of a electing a new board and moving forward with merger talks; this is known as a hostile takeover.[47][dead link] In response, Yahoo! stated on April 7 that they were not against a merger, but that they wanted a better offer. In addition, they stated that Microsoft's "aggressive" approach was worsening their relationship and the chances of a "friendly" merger.[48] Later the same day, Yahoo! stated that the original $45 billion offer was not acceptable.[48] Following this, there has been considerable discussion of having Time Warner's AOL and Yahoo! merge, instead of the originally proposed Microsoft deal.[49]
On May 3, 2008, Microsoft withdrew the offer. During a meeting between Ballmer and Yang, Microsoft had offered to raise its offer by $5 billion to $33 per share, while Yahoo! demanded $37. One of Ballmer's lieutenants suggested that Yang would implement a poison pill to make the takeover as difficult as possible, saying "They are going to burn the furniture if we go hostile. They are going to destroy the place."[50][51]
Analysts say that Yahoo!'s shares, which closed at $28.67 on May 2, are likely to drop below $25 and perhaps as low as $20 on May 5, which would put significant pressure on Yang to engineer a turnaround of the company. Some suggest that institutional investors would file lawsuits against Yahoo!'s board of directors for not acting in shareholder interest by refusing Microsoft's offer.[52][53]
On May 5, 2008, following Microsoft's withdrawal Yahoo!'s stock plunged some 15% lower to $23.02 in Monday trading and trimmed about $6 billion off of its market capitalization.
After Microsoft's failed bid to acquire Yahoo!, Microsoft is rumored to be looking at acquiring LiveDoor, a leading Japanese portal and the leading blogging service in Japan, to strengthen its position against Yahoo! Japan.
On June 12, 2008, Yahoo announced that it had ended all talks with Microsoft about purchasing either part of the business (the search advertising business) or all of the company. Talks had taken place the previous weekend (June 8), during which Microsoft allegedly told Yahoo that it was no longer interested in a purchase of the entire company at the price offered earlier -- $33/share. Also on June 12, Yahoo announced a non-exclusive search advertising alliance with Google.[55] Upon this announcement, many executives and senior employees have announced their plans to leave the company as it appears that they have lost confidence in Yahoo's strategies. According to market analysts, these pending departures are also impacting Wall Street's perception of the company.[56]
On July 7, 2008, Microsoft said it would reconsider proposing another bid for Yahoo if the company's nine directors were ousted at the annual meeting scheduled to be held on August 1, 2008. Microsoft believes it would be able to better negotiate with a new board.
Billionaire investor Carl Icahn, calling the current board irrational in its approach to talks with Microsoft, launched a proxy fight to replace Yahoo's board. On July 21, 2008 Yahoo settled with Carl Icahn, agreeing to appoint him and two allies to an expanded board.
On November 20, 2008, almost 10 months after Microsoft's initial offer of $33 per share, Yahoo's stock (YHOO) dropped to a 52-week low, trading at only $8.94 per share.
On November 30, 2008, Microsoft offered to buy Yahoo's Search business for $20 billion.
On July 29, 2009, it was announced with a 10 year deal that Microsoft will have full access to Yahoo search engine to be used in Microsoft future projects for its search engine Bing.[60] Under the deal, Microsoft was not required to pay any cash up front to Yahoo. The day after the deal was announced, Yahoo's share price declined more than 10% to $15.14, about 60% lower than Microsoft's takeover bid a year earlier.

Products and services

Main article: List of Yahoo-owned sites and services
Yahoo! provides a wide array of internet services that cater to most online activities. It operates the web portal http://www.yahoo.com which provides content including the latest news, entertainment, and sports information, and gives users quick access to other Yahoo! services like Yahoo! Mail, Yahoo! Maps, Yahoo! Finance, Yahoo! Groups and Yahoo! Messenger. The majority of the product offerings are available globally in more than 20 languages.

Change in direction under Carol Bartz

Yahoo! has tried to change its direction since chief executive Carol Bartz replaced co-founder Jerry Yang in January 2009.[61]
In July, Microsoft and Yahoo! agreed to a deal that will see Yahoo!'s websites use both Microsoft's search technology and search advertising. Yahoo! in turn will become the sales team for banner advertising for both companies. While Microsoft will provide algorithmic search results, Yahoo! will control the presentation and personalization of results for searches on its pages. This deal is not expected to be finalised before spring 2010 and is awaiting regulatory approval.
On July 21, 2009, Yahoo! launched a new version of its front page, called Metro. The new page allows users to customize it through the prominent "My Favorites" panel on the left side and integrate third-party web services and launch them within one page. Such applications include pages of Netflix, E-trade, Facebook, and other sites.[62]

Acquisition attempt by Microsoft

Microsoft and Yahoo! pursued merger discussions in 2005, 2006, and 2007, that were all ultimately unsuccessful. At the time, analysts were skeptical about the wisdom of a business combination.[37][38]
On February 1, 2008, after its friendly takeover offer was rebuffed by Yahoo!, Microsoft made an unsolicited takeover bid to buy Yahoo! for US$44.6 billion in cash and stock.[39][40] Days later, Yahoo! considered alternatives to the merger with Microsoft, including a merger with internet giant Google[41] or a potential transaction with News Corp.[42] However, on February 11, 2008, Yahoo! decided to reject Microsoft's offer as "substantially undervaluing" Yahoo!'s brand, audience, investments, and growth prospects.[43] As of February 22, two Detroit based pension companies have sued Yahoo! and their board of directors for breaching their duty to shareholders by opposing Microsoft's takeover bid and pursuing "value destructive" third-party deals.[44][dead link] In early March, Google CEO Eric Schmidt went on record saying that he was concerned that a potential Microsoft-Yahoo! merger might hurt the Internet by compromising its openness.[45] The value of Microsoft's cash and stock offer declined with Microsoft's stock price, falling to $42.2 billion by April 4.[46] On April 5, Microsoft CEO Steve Ballmer sent a letter to Yahoo!'s board of directors stating that if within three weeks they had not accepted the deal, Microsoft would approach shareholders directly in hopes of a electing a new board and moving forward with merger talks; this is known as a hostile takeover.[47][dead link] In response, Yahoo! stated on April 7 that they were not against a merger, but that they wanted a better offer. In addition, they stated that Microsoft's "aggressive" approach was worsening their relationship and the chances of a "friendly" merger.[48] Later the same day, Yahoo! stated that the original $45 billion offer was not acceptable.[48] Following this, there has been considerable discussion of having Time Warner's AOL and Yahoo! merge, instead of the originally proposed Microsoft deal.[49]
On May 3, 2008, Microsoft withdrew the offer. During a meeting between Ballmer and Yang, Microsoft had offered to raise its offer by $5 billion to $33 per share, while Yahoo! demanded $37. One of Ballmer's lieutenants suggested that Yang would implement a poison pill to make the takeover as difficult as possible, saying "They are going to burn the furniture if we go hostile. They are going to destroy the place."[50][51]
Analysts say that Yahoo!'s shares, which closed at $28.67 on May 2, are likely to drop below $25 and perhaps as low as $20 on May 5, which would put significant pressure on Yang to engineer a turnaround of the company. Some suggest that institutional investors would file lawsuits against Yahoo!'s board of directors for not acting in shareholder interest by refusing Microsoft's offer.[52][53]
On May 5, 2008, following Microsoft's withdrawal Yahoo!'s stock plunged some 15% lower to $23.02 in Monday trading and trimmed about $6 billion off of its market capitalization.[54]
After Microsoft's failed bid to acquire Yahoo!, Microsoft is rumored to be looking at acquiring LiveDoor, a leading Japanese portal and the leading blogging service in Japan, to strengthen its position against Yahoo! Japan.
On June 12, 2008, Yahoo announced that it had ended all talks with Microsoft about purchasing either part of the business (the search advertising business) or all of the company. Talks had taken place the previous weekend (June 8), during which Microsoft allegedly told Yahoo that it was no longer interested in a purchase of the entire company at the price offered earlier -- $33/share. Also on June 12, Yahoo announced a non-exclusive search advertising alliance with Google.[55] Upon this announcement, many executives and senior employees have announced their plans to leave the company as it appears that they have lost confidence in Yahoo's strategies. According to market analysts, these pending departures are also impacting Wall Street's perception of the company.[56]
On July 7, 2008, Microsoft said it would reconsider proposing another bid for Yahoo if the company's nine directors were ousted at the annual meeting scheduled to be held on August 1, 2008. Microsoft believes it would be able to better negotiate with a new board.[57]
Billionaire investor Carl Icahn, calling the current board irrational in its approach to talks with Microsoft, launched a proxy fight to replace Yahoo's board. On July 21, 2008 Yahoo settled with Carl Icahn, agreeing to appoint him and two allies to an expanded board.
On November 20, 2008, almost 10 months after Microsoft's initial offer of $33 per share, Yahoo's stock (YHOO) dropped to a 52-week low, trading at only $8.94 per share.[58]
On November 30, 2008, Microsoft offered to buy Yahoo's Search business for $20 billion.[59]
On July 29, 2009, it was announced with a 10 year deal that Microsoft will have full access to Yahoo search engine to be used in Microsoft future projects for its search engine Bing.[60] Under the deal, Microsoft was not required to pay any cash up front to Yahoo. The day after the deal was announced, Yahoo's share price declined more than 10% to $15.14, about 60% lower than Microsoft's takeover bid a year earlier.

Post dot-com bubble (2002–2009)

Yahoo! was one of the surviving large Internet companies after the dot-com bubble burst. Nevertheless, on September 26, 2001, Yahoo! stocks closed at a five-year low of $4.06 (split-adjusted).
Yahoo! formed partnerships with telecommunications and Internet providers to create content-rich broadband services to compete with AOL. On June 3, 2002, SBC and Yahoo! launched a national co-branded dial-up Internet access service.[25] In July 2003, BT Group Openworld announced an alliance with Yahoo!.[26] On August 23, 2005, Yahoo! and Verizon Communications launched an integrated DSL service.[27]
In late 2002, Yahoo! began to bolster its search services by acquiring other search engines. In December 2002, Yahoo! acquired Inktomi Corporation. In February 2005, Yahoo! acquired Konfabulator and rebranded it Yahoo! Widgets,[28] a desktop application and in July 2003, it acquired Overture Services, Inc. and its subsidiaries AltaVista and AlltheWeb. On February 18, 2004, Yahoo! dropped Google-powered results and returned to using its own technology to provide search results.
In 2004, in response to Google's release of Gmail, Yahoo! upgraded the storage of all free Yahoo! Mail accounts from 4 MB to 1 GB, and all Yahoo! Mail Plus accounts to 2 GB. On July 9, 2004, Yahoo! acquired e-mail provider Oddpost to add an Ajax interface to Yahoo! Mail.[29] On October 13, 2005, Yahoo! and Microsoft announced that Yahoo! Messenger and MSN Messenger would become interoperable. In 2007, Yahoo! took out the storage meters, thus allowing users unlimited storage.
Yahoo! continued acquiring companies to expand its range of services, particularly Web 2.0 services. Yahoo! Launchcast became Yahoo! Music on February 9, 2005. On March 20, 2005, Yahoo! purchased photo sharing service Flickr.[30] On March 29, 2005, the company launched its blogging and social networking service Yahoo! 360°. In June 2005, Yahoo! acquired blo.gs, a service based on RSS feed aggregation. Yahoo! then bought online social event calendar Upcoming.org on October 4, 2005. Yahoo! acquired social bookmark site del.icio.us on December 9, 2005 and then playlist sharing community Webjay on January 9, 2006.
On August 27, 2007, Yahoo! released a new version of Yahoo! Mail. It adds Yahoo! Messenger integration. (which includes Windows Live Messenger due to the networks' federation) and free text messages (not necessarily free to the receiver) to mobile phones in the U.S., Canada, India and the Philippines.[31]
On January 29, 2008, Yahoo! announced that the company was laying off 1,000 employees as the company had suffered severely in its inability to effectively compete with industry search leader Google. The cuts represent 7 percent of the company's workforce of 14,300. Employees are being invited to apply for an unknown number of new positions that are expected to open as the company expands areas that promise faster growth.[32]
In February, 2008, Yahoo! acquired Cambridge, Massachusetts-based Maven Networks, a supplier of internet video players and video advertising tools, for approx. $160 million.
Yahoo! announced on November 17, 2008 that Yang would be stepping down as CEO.[33]
On December 10, 2008, Yahoo! began laying off 1,520 employees around the world as the company managed its way through the global economic downturn.[34] By carefully managing expenses, Yahoo! has remained one of the most profitable pure-Internet companies in the world[35] , and maintains billions of dollars on its balance sheet[36], despite continued "softness" in the advertising world.

History and growth


Early history (1994–1999)


Yahoo! co-founders Jerry Yang (left) and David Filo (right)
In January 1994, Jerry Yang and David Filo were Electrical Engineering graduate students at Stanford University. In April 1994, "Jerry and David's Guide to the World Wide Web" was renamed "Yahoo!", for which the official backronym is "Yet Another Hierarchical Officious Oracle".[10][11] Filo and Yang said they selected the name because they liked the word's general definition, which comes from Gulliver's Travels by Jonathan Swift: "rude, unsophisticated and uncouth".[12] Its URL was akebono.stanford.edu/yahoo.
The Yahoo! domain was created on January 18, 1995.[14] Yang and Filo realized their website had massive business potential, and on March 1, 1995, Yahoo! was incorporatedOn April 5, 1995, Michael Moritz of Sequoia Capital provided Yahoo! with two rounds of venture capital, raising approximately $3 million.[16][17] On April 12, 1996, Yahoo! had its initial public offering, raising $33.8 million, by selling 2.6 million shares at $13 each.
Like many web search engines and web directories, Yahoo! diversified into a web portal. In the late 1990s, Yahoo!, MSN, Lycos, Excite and other Web portals were growing rapidly. Web portal providers rushed to acquire companies to expand their range of services, in the hope of increasing the time a user stayed at the portal.
On March 8, 1997, Yahoo! acquired online communications company Four11. Four11's webmail service, RocketMail, became Yahoo! Mail. Yahoo! also acquired ClassicGames.com and turned it into Yahoo! Games. Yahoo! then acquired direct marketing company Yoyodyne Entertainment, Inc. on October 12. On March 8, 1998, Yahoo! launched Yahoo! Pager,[18] an instant messaging service that was renamed Yahoo! Messenger a year later. On January 28, 1999, Yahoo! acquired web hosting provider GeoCities. Another company Yahoo! acquired was eGroups, which became Yahoo! Groups after the acquisition on June 28, 2000.
When acquiring companies, Yahoo! often changed the relevant terms of service. For example, they claimed intellectual property rights for content on their servers, unlike the companies they acquired. As a result, many of the acquisitions were controversial and unpopular with users of the existing services.[clarification needed]

Easter eggs and April Fool's Day jokes

Main article: Google's hoaxes
Google has a tradition of creating April Fool's Day jokes—such as Google MentalPlex, which allegedly featured the use of mental power to search the web.[137] In 2002, they claimed that pigeons were the secret behind their growing search engine.[138] In 2004, they featured Google Lunar (which claimed to feature jobs on the moon),[139] and in 2005, a fictitious brain-boosting drink, termed Google Gulp was announced.[140] In 2006, they came up with Google Romance, a hypothetical online dating service.In 2007, Google announced two joke products. The first was a free wireless Internet service called TiSP (Toilet Internet Service Provider)[142] in which one obtained a connection by flushing one end of a fiber-optic cable down their toilet and waiting only an hour for a "Plumbing Hardware Dispatcher (PHD)" to connect it to the Internet.Additionally, Google's Gmail page displayed an announcement for Gmail Paper, which allows users of their free email service to have email messages printed and shipped to a snail mail address.
Google's services contain a number of Easter eggs; for instance, the Language Tools page offers the search interface in the Swedish Chef's "Bork bork bork," Pig Latin, "Hacker" (actually leetspeak), Elmer Fudd, and Klingon.[144] In addition, the search engine calculator provides the Answer to the Ultimate Question of Life, the Universe, and Everything from Douglas Adams' The Hitchhiker's Guide to the Galaxy.[145] As Google’s search box can be used as a unit converter (as well as a calculator), some non-standard units are built in, such as the Smoot. A newly discovered easter egg is the spell-checker's result for the properly spelled word "recursion". The spell-checker built into Google search returns "Did you mean: recursion?" in a recursive link back to the same page.[146] Google also routinely modifies its logo in accordance with various holidays or special events throughout the year, such as Christmas, Mother's Day, or the birthdays of various notable individuals.her logo switches are based on search terms. For instance, if the term "ascii art" (all lower-case required) is searched, an ASCII art version of the Google logo will appear next to the search

Googleplex


Googleplex


The Googleplex
Main article: Googleplex
Google's headquarters in Mountain View, California, is referred to as "the Googleplex" in a play of words; a googolplex being 1010100, or a one followed by a googol of zeros, and the HQ being a complex of buildings (cf. multiplex, cineplex, etc). The lobby is decorated with a piano, lava lamps, old server clusters, and a projection of search queries on the wall. The hallways are full of exercise balls and bicycles. Each employee has access to the corporate recreation center. Recreational amenities are scattered throughout the campus and include a workout room with weights and rowing machines, locker rooms, washers and dryers, a massage room, assorted video games, foosball, a baby grand piano, a pool table, and ping pong. In addition to the rec room, there are snack rooms stocked with various foods and drinks.


Sign at the Googleplex
In 2006, Google moved into 311,000 square feet (28,900 m2) of office space in New York City, at 111 Eighth Ave. in Manhattan.[128] The office was specially designed and built for Google and houses its largest advertising sales team, which has been instrumental in securing large partnerships, most recently deals with MySpace and AOL.[128] In 2003, they added an engineering staff in New York City, which has been responsible for more than 100 engineering projects, including Google Maps, Google Spreadsheets, and others.It is estimated that the building costs Google $10 million per year to rent and is similar in design and functionality to its Mountain View headquarters, including foosball, air hockey, and ping-pong tables, as well as a video game area.In November 2006, Google opened offices on Carnegie Mellon's campus in Pittsburgh. By late 2006, Google also established a new headquarters for its AdWords division in Ann Arbor, Michigan.
Google is taking steps to ensure that their operations are environmentally sound. In October 2006, the company announced plans to install thousands of solar panels to provide up to 1.6 megawatts of electricity, enough to satisfy approximately 30% of the campus' energy needs. The system will be the largest solar power system constructed on a U.S. corporate campus and one of the largest on any corporate site in the world.Google has faced accusations in Harper's Magazine[132] of being extremely excessive with their energy usage, and were accused of employing their "Don't be evil" motto as well as their very public energy saving campaigns as means of trying to cover up or make up for the massive amounts of energy their servers actually require.
In 2009 Google announced it was deploying herds of goats to keep grassland around the Googleplex short, helping to prevent the threat from seasonal bush fires while also reducing the carbon footprint of mowing the extensive grounds

Corporate affairs and culture


Corporate affairs and culture



Left to right, Eric E. Schmidt, Sergey Brin and Larry Page
Google is known for its informal corporate culture, of which its playful variations on its own corporate logo are an indicator. In 2007 and 2008, Fortune Magazine placed Google at the top of its list of the hundred best places to work.Google's corporate philosophy embodies such casual principles as "you can make money without doing evil," "you can be serious without a suit," and "work should be challenging and the challenge should be fun."
Google has been criticized for having salaries below industry standards. For example, some system administrators earn no more than $35,000 per year – considered to be quite low for the Bay Area job market.However, Google's stock performance following its IPO has enabled many early employees to be competitively compensated by participation in the corporation's remarkable equity growth.
After the company's IPO in August 2004, it was reported that founders Sergey Brin and Larry Page, and CEO Eric Schmidt, requested that their base salary be cut to $1. Subsequent offers by the company to increase their salaries have been turned down, primarily because, "their primary compensation continues to come from returns on their ownership stakes in Google. As significant stockholders, their personal wealth is tied directly to sustained stock price appreciation and performance, which provides direct alignment with stockholder interests."Prior to 2004, Schmidt was making $250,000 per year, and Page and Brin each earned a salary of $150,000.[dubious – discuss]
They have all declined recent offers of bonuses and increases in compensation by Google's board of directors. In a 2007 report of the United States' richest people, Forbes reported that Sergey Brin and Larry Page were tied for #5 with a net worth of $18.5 billion each.
In 2007 and through early 2008, Google has seen the departure of several top executives. Gideon Yu, former chief financial officer of YouTube, a Google unit, joined Facebook along with Benjamin Ling, a high-ranking engineer, who left in October 2007. In March 2008, two senior Google leaders announced their desire to pursue other opportunities. Sheryl Sandburg, ex-VP of global online sales and operations began her position as COO of Facebook while Ash ElDifrawi, former head of brand advertising, left to become CMO of Netshops Inc.
Google's persistent cookie and other information collection practices have led to concerns over user privacy. As of 11 December 2007, Google, like the Microsoft search engine, stores "personal information for 18 months" and by comparison, AOL (Time Warner) "retain[s] search requests for 13 months", and Yahoo! 90 days.
U.S. District Court Judge Louis Stanton, on July 1, 2008 ordered Google to give YouTube user data / log to Viacom to support its case in a billion-dollar copyright lawsuit against Google. Google and Viacom, however, on July 14, 2008, agreed in compromise to protect YouTube users' personal data in the $1 billion copyright lawsuit. Google agreed it will make user information and Internet protocol addresses from its YouTube subsidiary anonymous before handing over the data to Viacom. The privacy deal also applied to other litigants including the FA Premier League, the Rodgers & Hammerstein Organisation and the Scottish Premier League. The deal however did not extend the anonymity to employees, since Viacom would prove that Google staff are aware of uploading of illegal material to the site. The parties therefore will further meet on the matter lest the data be made available to the court.

platform


Main article: Google platform
Google runs its services on several server farms, each comprising thousands of low-cost commodity computers running stripped-down versions of Linux. While the company divulges no details of its hardware, a 2006 estimate cites 450,000 servers, "racked up in clusters at data centers around the world. " The company has about 24 server farms around the world of various configurations. The farm in The Dalles, Oregon is powered by hydroelectricity at about 50 megawatts.

Books

Main article: Google Books
Google indexes a number of books and reached a revised settlement in 2009 to limit its scans to books from the U.S., the U.K., Australia and Canada.The Paris Civil Court ruled against Google in late 2009, asking them to remove the works of La Martinière (Éditions du Seuil) from their database. In competition with Amazon.com, Google plans to sell digital versions of new books.

Enterprise products

Google entered the enterprise market in February 2002 with the launch of its Google Search Appliance, targeted toward providing search technology to larger organizations.Providing search for a smaller document repository, Google launched the Mini in 2005.
Late in 2006, Google began to sell Custom Search Business Edition, providing customers with an advertising-free window into Google.com's index. In 2008, Google re-branded its next version of Custom Search Business Edition as Google Site Search.
In 2007, Google launched Google Apps Premier Edition, a version of Google Apps targeted primarily at the business user. It includes such extras as more disk space for e-mail, API access, and premium support, for a price of $50 per user per year. A large implementation of Google Apps with 38,000 users is at Lakehead University in Thunder Bay, Ontario, Canada.
Also in 2007, Google acquired Postini and continued to sell the acquired technology as Google Security Services

Gmail


Main article: Gmail
Gmail, known in the United Kingdom and Germany as Google Mail, is a free webmail, POP3 and IMAP service provided by Google. It was launched as an invitation-only beta release on April 1, 2004, and became available to the general public as a beta product on February 7, 2007. The service was upgraded from beta status on July 7, 2009, along with the rest of the Google Apps suite, at which time it had 146 million users monthly.[citation needed]. With an initial storage capacity offer of 1 GB per user, Gmail significantly increased the webmail standard for free storage from the 2 to 4MB its competitors offered at that time. The service currently offers over 7400 MB of free storage with additional storage ranging from 20 GB to 1 TB available for $5 to $256 (US) per year.
Gmail has a search-oriented interface and a "conversation view" similar to an Internet forum. Software developers know Gmail for its pioneering use of the Ajax programming technique.
Gmail runs on Google Servlet Engine and Google GFE/1.3 which run on Linux

Software

The Google web search engine is the company's most popular service. According to market research published by comScore in November 2009, Google is the dominant search engine in the US market, with a market share of 65.6%.Google indexes billions of Web pages, so that users can search for the information they desire, through the use of keywords and operators, although at any given time it will only return a maximum of 1,000 results for any specific search query. Google has also employed the Web Search technology into other search services, including Image Search, Google News, the price comparison site Google Product Search, the interactive Usenet archive Google Groups, Google Maps, and more.

In early 2006, the company launched Google Video, which allowed users to both upload videos, and search and watch videos from the larger Internet. In 2009 uploads to Google video were discontinued.
Google has also developed several desktop applications, including Google Desktop, Picasa, SketchUp and Google Earth, an interactive mapping program powered by satellite and aerial imagery that covers the vast majority of the planet. Many major cities have such detailed images that one can zoom in close enough to see vehicles and pedestrians clearly. Consequently, there have been some concerns about national security implications; contention is that the software can be used to pinpoint with near-precision accuracy the physical location of critical infrastructure, commercial and residential buildings, bases, government agencies, and so on. However, the satellite images are not necessarily frequently updated, and all of them are available at no charge through other products and even government sources; the software simply makes accessing the information easier. A number of Indian state governments have raised concerns about the security risks posed by geographic details provided by Google Earth's satellite imaging.
Google has promoted their products in various ways. In London, Google Space was set-up in Heathrow Airport, showcasing several products, including Gmail, Google Earth and Picasa.Also, a similar page was launched for American college students, under the name College Life, Powered by Google.
In 2007, some reports surfaced that Google was planning the release of its own mobile phone, possibly a competitor to Apple's iPhone. The project, called Android, turned out not to be a phone, but an operating system. It provides a standard development kit that will allow any "Android" phone to run software developed for the Android SDK, no matter the phone manufacturer. In September 2008, T-Mobile released the first phone running the Android platform, the G1.
Google Translate aka Google Language Tools is a server-side machine translation service, which can translate 35 different languages to each other, forming 595 language pairs. Browser extension tools (such as Firefox extensions) allow for easy access to Google Translate from the browser. The software uses corpus linguistics techniques from translated documents, (such as United Nations documents,[citation needed] which are professionally translated) to extract translations accurate up to 88 percent. A "suggest a better translation" feature appears with the original language text in a pop-up text field, allowing users to indicate where the current translation is incorrect or else inferior to another translation.
On 1 September 2008, Google pre-announced the upcoming availability of Google Chrome, an open-source web browser,[96] which was released on 2 September 2008.
On May 27, 2009, Google announced plans to develop Google Wave, a product that helps users communicate and collaborate on the web. A "wave" is equal parts conversation and document, where users can almost instantly communicate and work together with richly formatted text, photos, videos, maps, and much more. Google Wave is currently still in what the company calls "preview mode," in which a potential user must request access from Google to be given a Wave account.
On 7 July 2009, Google announced the project to develop Google Chrome OS, an open-source Linux-based operating system in a "window of opportunity".

Advertising


99% of Google's revenue is derived from its advertising programs. For the 2006 fiscal year, the company reported $10.492 billion in total advertising revenues and only $112 million in licensing and other revenues.Google is able to precisely track users' interests across affiliated sites using DoubleClick technology and Google Analytics. Google's advertisements carry a lower price tag when their human ad-rating team working around the world believes the ads improve the company's user experience.Google AdWords allows Web advertisers to display advertisements in Google's search results and the Google Content Network, through either a cost-per-click or cost-per-view scheme. Google AdSense website owners can also display adverts on their own site, and earn money every time ads are clicked.Google began in March 2009 to use behavioral targeting based on users' interests.
Google has also been criticized by advertisers regarding its inability to combat click fraud, when a person or automated script is used to generate a charge on an advertisement without really having an interest in the product. Industry reports in 2006 claim that approximately 14 to 20 percent of clicks were in fact fraudulent or invalid.
In June 2008, Google reached an advertising agreement with Yahoo!, which would have allowed Yahoo! to feature Google advertisements on their web pages. The alliance between the two companies was never completely realized due to antitrust concerns by the U.S. Department of Justice. As a result, Google pulled out of the deal in November, 2008.

Products and services


Google appliance as shown at RSA Conference 2008
Main article: List of Google products
Google has created services and tools for the general public and business environment alike, including Web applications, advertising networks and solutions for businesses.

Partnerships


In 2005, Google entered into partnerships with other companies and government agencies to improve production and services. Google announced a partnership with NASA Ames Research Center to build up 1,000,000 square feet (93,000 m2) of offices and work on research projects involving large-scale data management, nanotechnology, distributed computing, and the entrepreneurial space industry.[56] Google also entered into a partnership with Sun Microsystems in October to help share and distribute each other's technologies. The company entered into a partnership with AOL of Time Warner, to enhance each other's video search services.
The same year, the company became a major financial investor of the new .mobi top-level domain for mobile devices, in conjunction with several other companies including Microsoft, Nokia, and Ericsson. In September 2007, Google launched, "Adsense for Mobile", a service for its publishing partners which provides the ability to monetize their mobile websites through the targeted placement of mobile text ads, and acquired the mobile social networking site, Zingku.mobi, to "provide people worldwide with direct access to Google applications, and ultimately the information they want and need, right from their mobile devices."
In 2006, Google and Fox Interactive Media of News Corp. entered into a $900 million agreement to provide search and advertising on the popular social networking site, MySpace.
In 2007 Google, displaced America Online, who had been a NORAD Tracks Santa program sponsor since the year 2000, as a key partner and sponsor of the NORAD Tracks Santa program.[63][64][65] For the 2007 NORAD Tracking Santa season, Google Earth was used for the first time to track Santa Claus in 3-D.[66] During the 2007 NORAD Tracking Santa season, the NORAD Tracks Santa Web site received 10.6 plus million unique visitors from 212 countries and territories. In 2007, the NORAD Tracks Santa program made its presence known on YouTube at the NORADTracksSanta Channel on YouTube as part of the partnership with Google. The 2007 NORAD Tracks Santa infrastructure integration effort, in the words of Google's Official Blog, was, "In 2007, Google became NORAD's official Santa Tracking technology partner and hosted www.noradsanta.org. In addition to tracking Santa in Google Earth, we added a Google Maps tracker and integrated YouTube videos into the journey as well. Now, we had Santa on the map and on 'Santa Cam' arriving in several different locations around the world, with commentary in six different languages. The heavy traffic — several millions of users — put Google's infrastructure to the test, but with some heroic work by our system reliability engineers, the Santa Tracker worked continuously." In December 2008, BBC News interviewed Brian McClendon, engineering director for Google Earth and Google Maps on the NORAD Tracks Santa and Google's partnership and sponsorship as a "win-win" opportunity for everyone.
Google has developed a partnership with GeoEye to launch a satellite providing Google with high-resolution (0.41 m monochrome, 1.65 m color) imagery for Google Earth. The satellite was launched from Vandenberg Air Force Base on 6 September 2008.
In 2008, Google announced that it was hosting an archive of Life magazine's photographs, as part of a joint effort. Some of the images in the archive were never published in the magazine.The photos are watermarked and originally had copyright notices posted on all photos, regardless of public domain status.

Acquisitions


See also: List of acquisitions by Google
Since 2001, Google has acquired several companies, mainly focusing on small start-ups.
In 2004, Google acquired a company called Keyhole, Inc., which developed a product called Earth Viewer, renamed in 2005 to Google Earth.
In February 2006, software company Adaptive Path sold Measure Map, a weblog statistics application, to Google. Registration to the service has since been temporarily disabled. The last update regarding the future of Measure Map was made on 6 April 2006 and outlined many of the known issues of the service.
In late 2006, Google bought the online video site YouTube for $1.65 billion in stock. Shortly after, on 31 October 2006, Google announced that it had also acquired JotSpot, a developer of wiki technology for collaborative Web sites.
On 13 April 2007, Google reached an agreement to acquire DoubleClick. Google agreed to buy the company for $3.1 billion.
On 2 July 2007, Google purchased GrandCentral. Google agreed to buy the company for $50 million.
On 9 July 2007, Google announced that it had signed a definitive agreement to acquire enterprise messaging security and compliance company Postini.
On August 5 2009, Google announced the purchase of video software maker On2 Technologies for $106.5 million - its first acquisition of a public company.
On 24 November 2009, Google announced the purchase of Teracent, a California based start up company, for an undisclosed price. This is another acquisition on Google's behalf in a series of advertising related purchases- AdMob, Double Click.
On 12 February 2010, Google announced the acquisition of Aardvark, a social network search engine,for $50 million; "we're looking forward to collaborating to see where we can take it"

Growth


While the primary business interest is in the web content arena, Google has begun experimenting with other markets, such as radio and print publications. On 17 January 2006, Google announced the purchase of a radio advertising company "dMarc", which provides an automated system that allows companies to advertise on the radio. This will allow Google to combine two niche advertising media—the Internet and radio with Google's ability to laser-focus on the tastes of consumers. Google has also begun an experiment in selling advertisements from its advertisers in offline newspapers and magazines, with select advertisements in the Chicago Sun-Times. They have been filling unsold space in the newspaper that would have normally been used for in-house advertisements.

History of Google

the first iteration of Google production servers was built with inexpensive hardware and was designed to be very fault-tolerant
Google began in January 1996, as a research project by Larry Page, who was soon joined by Sergey Brin, when they were both PhD students at Stanford University in California. They hypothesized that a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, which ranked results according to the number of times the search term appeared on a page.Their search engine was originally nicknamed "BackRub" because the system checked backlinks to estimate the importance of a site.[19][20] A small search engine called Rankdex was already exploring a similar strategy.
Convinced that the pages with the most links to them from other highly relevant web pages must be the most relevant pages associated with the search, Page and Brin tested their thesis as part of their studies, and laid the foundation for their search engine. Originally, the search engine used the Stanford University website with the domain google.stanford.edu. The domain google.com was registered on 15 September 1997, and the company was incorporated as Google Inc. on 4 September 1998 at a friend's garage in Menlo Park, California. The total initial investment raised for the new company amounted to almost $1.1 million, including a $100,000 check by Andy Bechtolsheim, one of the founders of Sun Microsystems.
Both Brin and Page had been against using advertising pop-ups in a search engine, or an "advertising funded search engines" model, and they wrote a research paper in 1998 on the topic while still students. However, they soon changed their minds and early on allowed simple textads .In March 1999, the company moved into offices in Palo Alto, home to several other noted Silicon Valley technology startups. After quickly outgrowing two other sites, the company leased a complex of buildings in Mountain View, California at 1600 Amphitheatre Parkway from Silicon Graphics (SGI) in 2003. The company has remained at this location ever since, and the complex has since come to be known as the Googleplex (a play on the word googolplex). In 2006, Google bought the property from SGI for $319 million.
The Google search engine attracted a loyal following among a growing number of Internet users, who liked its simple design and useful results. In 2000, Google began selling advertisements associated with search keywords.The ads were text-based to maintain an uncluttered page design and to maximize page loading speed.Keywords were sold based on a combination of price bid and clickthroughs, with bidding starting at 5 cents per click. This model of selling keyword advertising was pioneered by Goto.com (later renamed Overture Services, before being acquired by Yahoo! and rebranded as Yahoo! Search Marketing). Goto.com was an Idealab spin off created by Bill Gross, and was the first company to successfully provide a pay-for-placement search service. Overture Services later sued Google over alleged infringements of Overture's pay-per-click and bidding patents by Google's AdWords service. The case was settled out of court, with Google agreeing to issue shares of common stock to Yahoo! in exchange for a perpetual license.[32] Thus, while many of its dot-com rivals failed in the new Internet marketplace, Google quietly rose in stature while generating revenue.
A patent describing part of the Google ranking mechanism (PageRank) was granted on 4 September 2001.The patent was officially assigned to Stanford University and lists Lawrence Page as the inventor.
Financing and initial public offering
The first funding for Google as a company was secured in August 1998, in the form of a $100,000 contribution from Andy Bechtolsheim, co-founder of Sun Microsystems, given to a corporation which did not yet exist.
On June 7, 1999 a round of funding of $25 million was announced,[35] with the major investors being rival venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital.[34]
The Google IPO took place on 19 August 2004. 19,605,052 shares were offered at a price of $85 per share. Of that, 14,142,135 (another mathematical reference as v2 ˜ 1.4142135) were floated by Google, and the remaining 5,462,917 were offered by existing stockholders. Shares were sold in a unique[38] online auction format using a system built by Morgan Stanley and Credit Suisse, underwriters for the deal. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion.] The vast majority of the 271 million shares remained under the control of Google. Many Google employees became instant paper millionaires. Yahoo!, a competitor of Google, also benefited from the IPO because it owned 8.4 million shares of Google as of 9 August 2004, ten days before the IPO.
The stock performance of Google after its first IPO launch has gone well, with shares hitting $700 for the first time on 31 October 2007, due to strong sales and earnings in the advertising market, as well as the release of new features such as the desktop search function and its iGoogle personalized home page. The surge in stock price is fueled primarily by individual investors, as opposed to large institutional investors and mutual funds.
The company is listed on the NASDAQ stock exchange under the ticker symbol GOOG and

Google Etymology


The name "Google" originated from a misspelling of the word "googol",[13][14] which refers to 10100, the number represented by a 1 followed by one hundred zeros. Having found its way increasingly into everyday language, the verb "google" was added to the Merriam Webster Collegiate Dictionary and the Oxford English Dictionary in 2006, meaning "to use the Google search engine to obtain information on the Internet.