How Yahoo Destroyed Its Value

The Internet Pioneer’s Long Journey to the Graveyard Was Shaped by Repeated Misjudgments in Mergers and Acquisitions

On July 25, Verizon announced plans to buy Yahoo’s internet assets plus some real estate for less than $5 billion in cash. Yahoo, which went public in 1996, had spent approximately $20 billion acquiring more than 100 companies, more than four times what it will receive in total from Verizon.

So while companies such as Google have built significant value as result of a well-considered mergers and acquisitions strategy, Yahoo seemed to squander its value. What role did merger-and-acquisition missteps play in Yahoo’s slow death?

There are three major reasons for …

Does Microsoft’s LinkedIn Deal Have a Shot at Success?

Though the Tech Giant Has a Lackluster Record in Mergers and Acquisitions, Its Latest Integration Attempt May Be Its Smartest

Even very successful companies can fail with mergers and acquisitions. M&A batting averages above 500 are considered exceptional, and sometimes companies like Google, which has devoted considerable resources toward developing …