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In 1997, Excite, one of the biggest websites at the time, rejected a €1,5 million buyout from Google, fearing that its technology was “too good” and would hurt its profits. Today, Excite is forgotten, while Google is worth trillions and dominates the world.
In 1997, a company called Excite, which at the time was one of the stars of the internet, had the opportunity to buy Google (then still called BackRub) for just 1,5 million euros. The offer seemed like a bargain, but it was rejected. Today, no one remembers Excite, while Google dominates the global scene.
Internet in 1997
In the 90s, the Internet was a booming territory. Companies like Yahoo!, AltaVista, and Excite competed for search dominance, something that seems almost unimaginable today. Excite was the sixth most visited website in the world, with a solid user base and a recognized brand.
On the other hand, Google, or rather BackRub, was just a revolutionary idea from young Larry Page and Sergey Brin. They believed that their search algorithm could transform the way people found information online, but they needed resources to move forward.
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Larry Page and the offer you can't refuse
Larry Page and Sergey Brin took their idea to Excite, offering to sell Google for €1,5 million. The deal included replacing Excite's search technology with Google's innovative algorithm. In today's money, that would be the equivalent of finding a gold nugget by chance and letting it slip away.
The proposal was clear: €550 in cash, €650 in Excite shares and €300 to go to Stanford University. But there was one crucial detail: Google would become Excite's new search engine.
The decision that changed everything
George Bell, Excite’s CEO, thought the offer was too risky. The main reason? Google’s technology was “too good.” Sounds counterintuitive, right? But the website believed that by making searches more efficient, the time users spent on the site would decrease, which would reduce advertising revenue.
It was a miscalculation. Bell rejected the purchase and moved on. This decision ended up being the beginning of the end for Excite.
The decline of Excite
In the following years, Excite was overtaken by competitors such as Google and Yahoo!. In 2001, after a series of bad decisions and changes in the market, Excite was acquired by Ask.com, completely losing its relevance.
Today, Excite exists as a shadow of its former self. It is part of the IAC conglomerate, but has no significant influence on the market.
What if the story were different?
Imagine what the world would be like if Excite had said “yes” to Larry Page’s proposal. Maybe Google would be just another tool within the portal, without the global reach it has today. The history of technology, as we know it, would be completely different.
But the irony is cruel: Excite had everything in hand and missed the chance to be the biggest company in the world. Meanwhile, Google has moved on, become synonymous with the internet, and rewritten the rules of the game.
