AltaVista was created by researchers at
Digital Equipment Corporation (DEC) who were trying to showcase the company's hardware to make it easier to find files on the company's public network.
Paul Flaherty came up with the idea, along with
Louis Monier, who programmed the
web crawler, and
Michael Burrows who wrote the
indexer. Ilene H. Lang was the first CEO of AltaVista; she was recruited by DEC to build its software business. At launch, AltaVista had two innovations that put it ahead of other search engines: It used a fast,
multi-threaded web crawler, Scooter, that could cover many more
World Wide Web pages than were believed to exist at the time, and it had an efficient
backend database, TurboVista, running on advanced hardware. In 1997, it launched
Babel Fish, a web-based
machine translation application that translated text or webpages. In January 1998,
Compaq acquired DEC for $9.6 billion, including $4.8 billion in cash and the remainder in stock, to acquire its server technology. As part of the transaction, Compaq acquired AltaVista. In February 1998, AltaVista added free
webmail. In May 1998, it ended its deal with Yahoo to provide search results. In August 1998, Compaq acquired the altavista.com
domain name for $3.3 million and redirected the site; it had previously used altavista.digital.com. Until January 1999, AltaVista featured only a
search engine on a "
utilitarian" web page with simple yellow and orange graphics. In February 1999, Compaq acquired Zip2 to enhance AltaVista. In June 1999, Compaq sold 83% of AltaVista to
CMGI for $2.1 billion in stock and $220 million in cash. In July 1999, AltaVista began offering financial content. In August 1999, AltaVista began offering free
dial-up Internet access. It ended the offering in December 2000. In October 1999, the site, as well as its price comparison site
Shopping.com, was relaunched. It then offered real-time traffic pictures, news, financial information, and entertainment. It also increased staff from 80 to over 600 and launched a new tagline: "AltaVista: smart is beautiful". It aired television advertisements, including one with
Pamela Anderson, as part of a $120 million marketing campaign. In November 1999, AltaVista acquired
RagingBull.com. In December 1999, AltaVista filed for a $300 million
initial public offering; it was cancelled due to the end of the
dot-com bubble. In 2000, according to
Media Metrix, AltaVista was used by 17.7% of Internet users while
Google Search was used by only 7% of Internet users. In October 2000, Rod Schrock resigned as CEO. In February 2002, AltaVista shut its
webmail service; at the time, it had 200,000 users. The accounts were transferred to
Mail.com. In November 2002, the website was redesigned again to include a pared-down front page and more frequent updates of indexed links. In February 2003,
Overture Services acquired AltaVista for $140 million. In July 2003,
Yahoo acquired Overture for $1.63 billion. In June 2013, the domain name was
redirected to
Yahoo Search. ==How it worked==