Yahoo’s fall from grace is well documented, with its once dominant position in the search industry undermined by years of mismanagement.

New CEO Scott Thompson has a major task on his hands reversing the company’s declining fortunes, with his plans currently focused on boosting ad revenues and forging a closer alliance with Microsoft.

We’ve flagged up five of Yahoo’s biggest acquisition mistakes before, but it’s always interesting to see just how drastic the company’s decline has been.

This infographic from HighTable charts Yahoo’s tumbling market cap and falling revenue growth, suggesting that Thompson may have an impossible job on his hands.

David Moth

Published 25 April, 2012 by David Moth

David Moth is Editor and Head of Social at Econsultancy. You can follow him on Twitter or connect via LinkedIn

1719 more posts from this author

You might be interested in

Comments (2)

James Perrin

James Perrin, Digital Communications Specialist at Feefo

Great infographic. I've been particularly interested in the demise of Yahoo, as it were. I was surprised to hear last week about their rise in profits, however it's clear that Scott Thompson is merely plugging holes, and making short term gains through cuts etc.

As you've shown, flawed investments and a lack of direction and identity hasn't helped them. So, despite such short term gains, I think they will struggle to get back to dominating any form of market.

Finally, the issue over the pending patent lawsuits will serve to better their profits once again, if they're successful of course. But again, this won't mean they'll suddenly become a great Internet company once again.

over 6 years ago



There is hope for Yahoo, but nobody at the company seems to 'get it'.

If the primary reason people drop onto the Yahoo site is search then they're doomed, quite simply because Google will eat up all of their potential in that space. The average Joe does not choose their search engine based on which is best, technically.

Which makes me think that many people have a very tenuous link to Yahoo only through the legacy Yahoo stuff, principally e-mail and Yahoo Groups which, as it happens, might be the hope because they are good, working and used by an awful lot of people. The groups should not be underestimated, but for sure Yahoo just doesn't appear to see the golden egg they have there.

And whilst they don't spot what is different, how are they going to draw new people to use them and their services? How can they stop this decline and how can they grow? Clearly, they are not.

People are lazy - it's human nature. They will gravitate to what they know, what's familiar, what is easy and what works for them. If Yahoo can get that right then folks will move to it and will stick with it. However, in the most part (and privacy issues aside) Google does indeed work - very well - and they've managed to get themselves into the position of being a verb. When was the last time someone suggested you "Yahoo it"?

So, being the observer of the Yahoo decline, my only question would be "Where is the Wow?"

If they can find that, then there is hope. If not, then the downward spiral will continue.

over 6 years ago

Save or Cancel

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Digital Pulse newsletter. You will receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.