Wired looks at why Yahoo failed to beat Google

— 3:08 PM on January 17, 2007

Wired has put up a fairly interesting article that looks at Yahoo's battle against Google. According to Wired, Yahoo could own Google today if it hadn't botched a buyout bid five years ago. Yahoo CEO Terry Semel offered to buy the younger startup for $3 billion, even though his staff believed Google was actually worth at least $5 billion. $5 billion was too close to Yahoo's own value for Semel's comfort, though, and the buyout never happened. After Google turned the offer down, Yahoo moved to plan B and decided to try beating Google at its own game instead of simply taking it over. However, Wired says Yahoo "fumbled, bungled, and mishandled its execution at every step," allowing Google's market share (and stock price) to soar past.

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