Kristine R.

Apale

AC509 12:00 P.M. 1:30 P.M. MW

BSA 2

Mr. Brian L. Baluya

Assignment: Initial Public Offerings

Yahoo!s Initial Public Offerings (IPO)
Yahoo! Inc. is an American multinational corporation known for its Web portal, search
engine Yahoo Search, and related services, including Yahoo Directory, Yahoo Mail, Yahoo
News, Yahoo Finance, Yahoo Groups, Yahoo Answers, advertising, online mapping, video
sharing, fantasy sports and its social media website.
Yahoo! was first known as "Jerry and David's Guide to the World Wide Web" way back
January 1994 which was created by Jerry Yang and David Filo who were electrical engineering
graduates of Stanford University. The guide was a directory of other websites.
By the end of 1994, it was accessed by 100,000 users and it received a million hits. Realizing
the massive business potential of their website, Yahoo! was incorporated. On April 5,
1995, Michael Moritz of Sequoia Capital provided Yahoo! with two rounds of venture capital,
raising approximately $3 million. On April 12, 1996, Yahoo! had its initial public offering,
raising $33.8 million by selling 2.6 million shares of Common Stock (NASDAQ National
Market: YHOO) at the opening bid of $13 each. The proceeds were used for general corporate
purposes. The offering was managed by Goldman Sachs & Co. (Investment banking company),
Donaldson, Lufkin & Jenrette Securities Corporation (Investment banking company) and
Montgomery Securities (Investment banking company).
By 1998, Yahoo! (web portal) was the most popular starting point for web users. It also made
many high-profile acquisitions. Its stock price skyrocketed during the dot-com bubble, when
internet related businesses were boom, Yahoo stocks closing at an all-time high of $118.75 a
share on January 3, 2000. However, after the dot-com bubble burst, it reached a post-bubble low
of $8.11 on September 26, 2001.
Its current stock price as per date is:

The trend for Yahoo!s shares since April 12, 1996 to November 29, 2014: