RUNNING HEAD: Yahoo Initial Public Offering (IPO)
Yahoo Initial Public Offering (IPO)
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Abstract
The preceding paper analyzes the financial trends of Yahoo Corporation. It discusses in detail, the initial public offering process of Yahoo corporation. The performance of Yahoo stock and the trends in its stock price after the initial public offering are also discussed in detail in this paper.
Yahoo Initial Public Offering (IPO)
Introduction
Yahoo Corporation is an internet communication and media company. It provides network, every day, services to about two hundred and seventy four million people around the globe. Being a pioneer in the Web navigation, Yahoo is the first choice of many customers in the fields of advertisements, households and businesses. The company headquarters are in Sunnyvale from where it spreads to Europe, Asia, Latin America, Canada, USA and Australia. (Press, 1995)
In addition to the services provided by Yahoo Corporation, it has the advantage of being free. The website is sponsored by advertisers who pay Yahoo for the promotion of their products on the website. The advertisers are lured towards Yahoo because of the wide customer base of 2.4 billion entertained by a network of 25 international sites in 13 different languages. This certainly gives Yahoo an edge over its competitors. Moreover, the corporation also gives services of mail, chat and news according to respective geographic areas. (Press, 1995)
The
A while ago the Economist featured this graphic to demonstrate the true value of Yahoo’s core business after stripping away all of it’s holdings. Holdings included Alibaba, Yahoo Japan, it’s cash and debt. By examining the underlying asset, we can predict how defensible and powerful it truly is without having to deal with any of the fat.
Whether a Yahoo acquisition can lead to even a small share of “balance of power” in digital advertising is the big question. Yahoo plus AOL would give Verizon, the largest wireless telecom provider in the US, a reported 5 percent share of digital ad revenues globally. The most common argument is that Verizon is over paying for two things: a competitive content platform and better ad tech. Beginning with content, there are four kings: Google, Facebook, Snapchat and Netflix. Then we have a distinct second tier: Twitter, Hulu, Amazon and Microsoft.
This document does not constitute buying advice or offer and should not be relied upon in connection with any contract, purchasing, or investment decision. The information contained in this document is privileged and confidential, intended for use during personal pre-ICO stage, for the eyes of friendly investors
As a communication giant with solid foundation, Verizon is still facing a transition from simple communication service to multiple internet services. Some people think that the acquisition of Yahoo is an extensional action of Verizon acquiring AOL last year, because AOL and Yahoo are similar traditional internet business. The core Internet business Yahoo sold to Verizon is a remedy for Verizon’s shortage of digital media business. Through Yahoo's online business, Verizon’s future layout may be faster. The online digital media services platform will not only help Verizon’s business expansion, but also can help Verizon to further enhance its corporate value and brand through Internet channels. CEO Lowell McAdam of Verizon says his company intends to become a significant player in digital media. (Knutson, 2016)
This paper will examine the current and future use of internet technologies that Boohoo.com undertakes. ‘The company’s mission is to provide a visually stimulating, invigorating and evolving on-line shopping experience, which offers inspirational products, exciting promotions and unsurpassed customer service.’ (Boohoo, 2010)
China Securities Co., Ltd. makes offering of services including "financial advisory and securities brokerage services. It provides security underwriting, initial public offering, and financial consulting services. The firm was founded in 2005 and is based in Beijing, China." (Bloomberg Business Week, 2012)
The stock market in India is one of the efficient and dynamic markets for securities in Asia. Shares trading market started growing in India from 19th century when a bunch of stock brokers in Bombay formed Native Share and Stockbrokers Association in 1875. This association played a key role in devising the codes of conduct in stock broking industry and helped in mobilizing capital for investment in various corporate companies. It was later known as Bombay Stock Exchange, the oldest stock exchange of Asia. BSE National Index was launched by January 1989 and consisted of 100 stocks listed at 5 major exchanges in India.
Flickr a popular photo sharing application is a direct competitor to the Google’s Picasa. So, in essence, Yahoo is a multi-market competitor of Google and their competition does not end there. Their tangible and intangible resources are also comparable. For instance, both Yahoo and Google have high powered servers and large data centers that backup and power their various online applications. Both have more than two decades of experience in consumer level applications and services. Both have garnered a strong goodwill and are among the most popular internet companies in the world. Since both of their customers are online and consumers of services such as search engine and emails, their competition would fierce in this respect and would naturally get intense as they release new products to encompass new users in their online ecosystem.
For example, commercial banks began to use electronic funds transfers to speed up payment. In1970’s and 1980’s, e-commerce expanded significantly within the business sector, while governments attempted to improve information exchange and security. Late 1980’s and early 1990’s, online services have been emerged, using first-generation news, email, and chat capabilities. In the year 1995’s, the browser and its key associated with protocol, also known as HTTP, are commercialized, turning the “home page” into an important component of corporate marketing. In late 1990’s, Dot-coms phenomenon began with the use of Web as their primary channel for product distribution, proliferate and challenge established
Based on Yahoo! Inc.’s About Us page, “Yahoo is the world's largest start-up, which means that Yahoo! move fast and always let users lead the way. Yahoo! is the leader in global daily habits like email, entertainment, news and sports.” Every day, users across the globe access Yahoo to check e-mail, daily news, sports, entertainment, stock markets, and entertainment.
An initial public offering is the decision by a company to sell its stock to the public for the first time. In some cases, this process is described as a transaction with which an investment banking company generates investment capital though making the company to go public. One of the most critical aspects within an initial public offering is significant public interest because investment bankers generate huge fees depending on the amount of capital raised. Consequently, the interest of investment bankers is usually attracted by large or well-recognized companies. Initial public offerings are sometimes characterized with huge gains on the first day but they tend to flop when the financial market is cold.
Yahoo was an early success due to a combination of factors such as timing, hard work, and a good understanding of Web surfer’s tastes and needs.. In early 1995, Net mania was just flowering. It was a great time to be a young entrepreneur with an Internet idea. Dave Faldo and Jerry Yang saw a consumer need for classifying and differentiating web sights. Resting the urge to automate this process, Yahoo’s founders instead chose to manually perform this search, reviewing and classifying roughly 1000 sights a day. This approach combined with their decision to offer a free service lead to early success.
Yahoo! Inc. is one of the oldest and most well-known Internet content providers. Yahoo! Inc. offers one of the most diverse Internet websites. It is believed that by expanding Yahoo!'s services and expanding broadband access, Yahoo! customers will stay on the website and spend increasing amounts of time and money. Yahoo! Inc's biggest obstacle lies in its competition in the form of
Yahoo! Inc. has also teamed in a joint venture with VISA to establish Yahoo! Marketplace (Joint Ventures). This joint venture occurred in August of 1996 and has since then created a navigational service focused on information and resources for the purchase of consumer products and services over the internet (Joint Ventures). This joint venture alone created a new market for Yahoo! Inc (Joint Ventures).
Following the success of Netscape and its web browser, Internet became a resource and communication platform idolized by many IT students in the universities. What started off as a hobby-cum-research[1] work by Jerry Yang (now Chief of Yahoo!) and David Filo (Co-founder of Yahoo!) for their Ph.D. dissertations; has evolved and became an Internet sensation over time. What they did was to compile all their favourite web links to form an online directory for easy navigation in the World Wide Web. The duo’s work immediately garnered a lot of attention from many surfers in the Internet world and before they realized it, Yahoo! became one of the most highly visited websites of all time. The duo saw the