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In response to Google's Gmail, Yahoo began to offer unlimited email storage in 2007.
According to third-party web analytics providers, Alexa and Similar Web, Yahoo!
Tumblr's CEO and founder David Karp would remain a large shareholder.
The announcement reportedly signified a changing trend in the technology industry, as large corporations like Yahoo, Facebook, and Google acquired start-up Internet companies that generated low amounts of revenue as a way in which to connect with sizeable, fast-growing online communities.
The portal also gave users access to other Yahoo services like Yahoo!
Search, Yahoo Mail, Yahoo Maps, Yahoo Finance, Yahoo Groups and Yahoo Messenger.
On April 4, 2012, Yahoo announced a cut of 2,000 jobs or about 14 percent of its 14,100 workers.
The cut was expected to save around 5 million annually after the layoffs were completed at end of 2012.
In February 2008, Microsoft Corporation made an unsolicited bid to acquire Yahoo for .6 billion.
Yahoo formally rejected the bid, claiming that it "substantially undervalues" the company and was not in the interest of its shareholders.
In early 2012, after the appointment of Scott Thompson as CEO, rumors began to spread about looming layoffs.
Several key executives, such as Chief Product Officer Blake Irving, left.
However, Filo and Yang insist they mainly selected the name because they liked the slang definition of a "yahoo" (used by college students in David Filo's native Louisiana in the late 1980s and early 1990s to refer to an unsophisticated, rural Southerner): "rude, unsophisticated, uncouth." This meaning derives from the Yahoo race of fictional beings from Gulliver's Travels. Like many search engines and web directories, Yahoo added a web portal.