Why did Compaq buy Zip2?

In an effort to make its Internet search engine, Altavista, more competitive with rivals like Yahoo, Lycos and Excite, the Compaq Computer Corporation announced yesterday that it had acquired the Zip2 Corporation, a privately held company that helps newspapers develop city directory-type Web sites.

Why was Zip2 a failure?

According to The New York Times, The two companies “cited incompatibilities in cultures and technology” as the reason for the merger’s failure. In February 1999, Compaq Computer paid US$305 million to acquire Zip2. Elon and Kimbal Musk, the original founders, netted US$22 million and $15 million respectively.

What was the purpose of Zip2?

Zip2, former American technology company (1995–99) that was the first enterprise founded by Elon Musk. It provided a searchable business directory that could be described as an Internet version of the yellow pages telephone directory with maps included.

How does Zip2 make money?

Zip2 enabled companies to post content on the Internet, such as maps and directory listings. With an investment deal, Musk gave up much of his control of the company. But he made out like a bandit when Compaq bought Zip2 for $307 million (in cash), which was the biggest sum paid for an Internet company up to that time.

How much is Kimbal Musk worth?

Forbes conservatively estimates that Kimbal Musk has a net worth of about $700 million.

When did Elon Musk create Zip2?

1995
Musk launched his first company, Zip2 Corporation, in 1995 with his brother, Kimbal Musk. An online city guide, Zip2 was soon providing content for the new websites of both The New York Times and the Chicago Tribune.

Is Zip2 dead?

Zip2 is officially dead.

What did Elon Musk do after selling Zip2?

PayPal. In 1999, Elon and Kimbal Musk used the money from their sale of Zip2 to found X.com, an online financial services/payments company. An X.com acquisition the following year led to the creation of PayPal as it is known today.

Why did Elon Musk sell Zip2 to Compaq?

When Musk said something would take a day to complete, it would actually take a week or two. Finally, in February 1999, PC-maker Compaq Computer offered to pay $307 million in cash for Zip2. But Musk never considered sticking around at Compaq and was already thinking of new projects. He wanted to become a successful CEO.

What is the history of Zip2?

See Article History. Zip2, former American technology company (1995–99) that was the first enterprise founded by Elon Musk. It provided a searchable business directory that could be described as an Internet version of the yellow pages telephone directory with maps included.

What is zipzip2 used for?

Zip2, former American technology company (1995–99) that was the first enterprise founded by Elon Musk. It provided a searchable business directory that could be described as an Internet version of the yellow pages telephone directory with maps included, which it later made available to online newspapers.

Which companies use Zip2?

The New York Times was an early customer, and many other major newspapers and newspaper chains followed. By that time Zip2 also included an arts and entertainment guide and specific directories for different categories of businesses.