This Day in Market History, April 12: Yahoo! Initial Public Offering

Each day, Benzinga looks back at a notable market-related moment that happened on that date.

What happened? On April 12, 1996, Yahoo! became public.

where was the market: The Dow ended the day at 5,532.59. The S&P 500 finished at 636.71.

What else was going on in the world? In 1996, the IBM IBM Deep Blue computer beat world chess champion Gary Kasparov. Microsoft Corporation MSFT and its partner NBC launched the cable news channel MSNBC. The average monthly rent was $554.

Yahoo‘s IPO: Long before Google became the dominant global search engine, Yahoo! was the website that many internet users set as their homepage. Investor enthusiasm for Yahoo! was through the roof.

Its IPO priced at just $13 per share, but it opened its first day of trading at $24.50 and never looked back, ending the day up 154%. At the time, Yahoo’s first-day earnings were the third-largest of any IPO on record.

When the dust settled, Yahoo stock closed on day one at a price of $33 per share, representing a market capitalization of $848 million.

Yahoo’s stock peaked at $118.75 during the dotcom bubble in 2000. Although the company survived the bursting of the bubble, its stock price never returned to those levels.

Verizon Communications Inc. VZ reached an agreement to acquire Yahoo’s core business in 2017.