87. How Yahoo Mismanaged the Flickr and Delicious Deals
Year: 2005
Location: Sunnyvale, California (HQ)
Company: Yahoo
Estimated Damage Value: $45-60 million*
In 2005, Yahoo’s acquisitions of Flickr for $35 million and Delicious highlighted a series of strategic blunders, including culture clashes and significant layoffs, costing them between $45-$60 million. The founders’ departure underscored Yahoo’s mishandling, tarnishing its acquisition reputation.

The purchase of Delicious, alongside Flickr in 2005, led to its founder, Josh Schachter, leaving two years later due to reduced responsibilities and team dismissals. These events fortified Yahoo’s notoriety as a hazardous harbor for start-ups considering acquisition.