Wednesday, September 30, 2015
Summary: This is the first of three sessions where we discuss the differences between an idea and an opportunity.
Quote of the
"The key to a leader's impact is
sincerity. Before he can inspire with emotion he must be
swayed by it himself. Before he can move their tears his own
must flow. To convince them he must himself believe." Winston Churchill
Guest: Srinija Srinivasan
on Study Questions.)
- What made Yahoo such
an attractive opportunity (and not just a good idea) in 1995 according
to Salhman and any other relevant frameworks discussed in Session 2 of E145? How will Yahoo make
- Identify the major risks in each of these
categories at the time of the case: technology, market, team, and
financial. What is the most critical category and
- What are the advantages and disadvantages of
each of the three major options they could pursue to finance the venture
in 1995 (e.g., venture capital, corporate partnerships and
sponsorships, and acquisition to become an operating division of an
established company)? Be prepared for an in-class role play either as Jerry and Dave or the venture capitalists at Sequoia.
- For general interest and only
if time permits for discussion towards the end of the session, what do
you believe Yahoo's vision and strategy should be
on Case Analyses.) All teams must submit one copy each.
"We suggest that Jerry and David [accept/do not accept -- choose
] Sequoia's offer
AOL, which was an established technology company and industry leader at the time, has just offered $2 million to buy Yahoo. This would mean $1 million cash each for David and Jerry. They would also lead a new operating division of AOL.