Dot-com company

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A dot-com company, or simply a dot-com (alternatively rendered, dot com or .com), is a company that does most of its business on the Internet, usually through a website that uses the popular top-level domain ".com" (in turn derived from the word "commercial").

While the term can refer to present-day companies, it is also used specifically to refer to companies with this business model that came into being during the late 1990s. Many such startups were formed to take advantage of the surplus of venture capital funding. Many were launched with very thin business plans, sometimes with nothing more than an idea and a catchy name. The stated goal was often to "get big fast", i.e. to capture a majority share of whatever market was being entered. The exit strategy usually included an IPO and a large payoff for the founders. Others were existing companies that re-styled themselves as Internet companies, many of them legally changing their names to incorporate a .com suffix.

With the stock market crash around the year 2000 that ended the dot-com bubble, many failed and failing dot-com companies were referred to punningly as dot-bombs,[1] dot-cons[2] or dot-gones.[3] Many of the surviving firms dropped the .com suffix from their names.[4]

List of well-known failed dot-coms[edit]

In the late 1990s many businesses were interested in investing in the Internet to expand their market. The Internet has the ability to reach out to consumers globally as well as providing more convenient shopping to the consumer. If planned and executed correctly, the Internet can greatly improve sales. However, there were many businesses in the early 2000s (decade) that did not plan correctly and that cost them their business.

One of the biggest mistakes early dot com businesses made was that they were more interested in attracting visitors to their website but not necessarily winning customers over. Early e-commerce thought the most important factor was to have as many visitors as possible gather to their website and this would eventually translate into profits for their business. This was not necessarily the case and businesses failed. Early dot com businesses also failed to take the time to properly research the situation before starting their businesses. There are many factors that come into play when starting a new business. Research needs to go into the product the business is actually trying to sell. The business also needs to research a price for their product. They need to be competitive with the cost of their product compared to their competitors. Early businesses failed to research how they promoted their product. If they decided to advertise their product only through the cheapest avenues (i.e. banner ads, radio), then most likely they would not get the amount of consumers they would if they advertised through more popular means.

There are thousands of failed companies from the dot-com bubble of the late 1990s. Here are a few of the largest and most famous.

Main article: dot-com bubble


AcquisitionBought byPriceDate
HotmailMicrosoft$400,000,000December 1997
Internet Movie DatabaseAmazon.com1998
ViawebYahoo!$49,000,000June 8, 1998
Netscape CommunicationsAOL$4,200,000,00024 November 1998
GeoCitiesYahoo!$3,570,000,000January 28, 1999
Broadcast.comYahoo!$5,700,000,000April 1, 1999
ThawteVeriSign$575,000,000December 1999
Network SolutionsVeriSign$21,000,000[11]2000
eGroupsYahoo!$432,000,000June 28, 2000
AllBusiness.comNBCi$225,000,000[12]March 2000
HotJobsYahoo!December 27, 2001
PayPaleBay$1,500,000,000October 3, 2002
InktomiYahoo!$235,000,000March 2003
Pyra LabsGoogle2003
Overture Services, Inc.Yahoo!$1,700,000,000July 2003
Keyhole Inc.Google2004
KelkooYahoo!March 25, 2004
PicasaGoogleJuly 2004
Oddpost.comYahoo!July 9, 2004
LycosDaum$95,400,000August 2, 2004
Upcoming.orgYahoo!October 5, 2005
Ask.comIAC/InterActiveCorp$1,850,000,000March 2005
DialPad CommunicationsYahoo!June 14, 2005
MySpaceNews Corporation$580,000,000July 2005
KonfabulatorYahoo!July 25, 2005
dodgeballGoogleMay 2005
Provide CommerceLiberty Media$477,000,000December 5, 2005[13]
Friends ReunitedITV plc$230,000,000December 6, 2005
del.icio.usYahoo!$15,000,000December 9, 2005
WebjayYahoo!January 9, 2006
IronPortCisco Systems$830,000,000June 25, 2007
SkypeEBay$2,500,000,000.September 12, 2005[14]

Notes and references[edit]

  1. ^ USA Today. December 28, 2000 |url= missing title (help). Retrieved May 1, 2010. [dead link]
  2. ^ Skillings, Jonathan. "Explaining the "dot-cons"". ZDNet. 
  3. ^ From dotcoms to dotgones.. - News - London Evening Standard. (2001-12-13). Retrieved on 2013-07-19.
  4. ^ Glasner, Joanne (2001-08-31). "Dot's In A Name No More". Wired news. Retrieved 2005-12-27. 
  5. ^ Malmsten, Ernst (2001). Boo Hoo: A Story from Concept to Catastrophe. Random House Business Books. ISBN 978-0712672399. 
  6. ^ Platt, Charles. "You've Got Smell!". Wired. Retrieved 28 November 2013. "DigiScent is here. If this technology takes off, it's gonna launch the next Web revolution." 
  7. ^ Helmore, Edward (2001-05-10). "So Who's Crying Over Spilt Milk?". London: The Guardian. Retrieved 2007-06-27. 
  8. ^ "Game Mags Gone Because of MySpace Spam?". 2007-03-13. Retrieved 2007-06-27. 
  9. ^ Top 10 dot-com flops -
  10. ^ "The greatest defunct Web sites and dotcom disasters". CNET. 2008-06-05. Archived from the original on 2008-06-07. Retrieved 2011-02-10. 
  11. ^ Company History | Network Solutions
  12. ^ NBCi agrees to acquire | CNET
  13. ^ "Liberty Media Form 8-K". SEC. 
  14. ^
  15. ^ Moulds, Josephine (May 24, 2011). "Twitter buys TweetDeck for $40m". The Daily Telegraph (London). 

See also[edit]

External links[edit]

External video
Web StartUps, Net Cafe