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{{short description|American software company}} {{short description|American software company}}
{{Use mdy dates|date=August 2023}}
{{Infobox company {{Infobox company
| name = Zip2 | name = Zip2 Corp.
| former_name = Global Link Information Network (1995–1996) | former_name = Global Link Information Network (1995–1996)
| logo = | logo = Zip2 corporate logo.gif
| type = ] | type = ]
⚫ | fate = Purchased by ]
| industry =
| founded = {{Start date and age|1995|11|06}}
⚫ | fate = Purchased by ] in 1999
| predecessor = | founder = {{Ubl
| ]
| successor =
| ]
| founded = {{Start date and age|06 November 1995}} (as Global Link Information Network). Renamed Zip2 on 15 August 1996 <br />], ], ]<ref>https://businesssearch.sos.ca.gov/Document/RetrievePDF?Id=01952516-4581259 {{Bare URL PDF|date=March 2022}}</ref><ref>https://businesssearch.sos.ca.gov/Document/RetrievePDF?Id=01952516-6128148 {{Bare URL PDF|date=March 2022}}</ref>
| Greg Kouri
| founder = ]<br />]<br />]
}}
| defunct = {{End date|1999|03|31}}<ref>https://businesssearch.sos.ca.gov/Document/RetrievePDF?Id=01952516-6183200 {{Bare URL PDF|date=March 2022}}</ref>
| defunct = {{End date|2003|07|28}}<br>({{Age in years, months and days|1995|11|06|2003|07|28}})
| location_city = Palo Alto, California, California | location_city = ], ]
| location_country = U.S.
| area_served = ] | location_country = United States
| area_served = United States
| key_people =
| products = Zip2.com<br />Auto Guide | products = {{Ubl
| Zip2.com
| Auto Guide
}}
| owner =
⚫ | parent = Compaq Computer (1999–)
| num_employees =
⚫ | website = {{webarchive |url=https://web.archive.org/web/19990202180446/http://www.zip2.com/ |date= 2 February 1999 |title=zip2.com }}
⚫ | parent = ] (1999–)
| footnotes = <ref>{{Cite web |date=2003-07-28 |title=Termination |url=https://bizfileonline.sos.ca.gov/api/report/GetImageByNum/152174004203209070092186031128204050069102075158 |access-date=2023-08-02 |website=]}}</ref>
⚫ | website = {{URL|https://web.archive.org/web/19990202180446/http://www.zip2.com:80/}}
}} }}
{{Elon Musk series}} {{Elon Musk series}}
'''Zip2''' was a company that provided and licensed online ] software to newspapers.<ref name="ep19971024">{{cite web|last1=Outing|first1=Steve|date=24 October 1997|title=Zip2 Plays Up National Network Card|url=http://www.editorandpublisher.com/PrintArticle/Zip2-Plays-Up-National-Network-Card|url-status=live|archive-url=https://web.archive.org/web/20141202000847/https://www.editorandpublisher.com/printarticle/zip2-plays-up-national-network-card/|archive-date=2 December 2014|access-date=10 December 2015|website=]}}</ref> The company was founded in ] as '''Global Link Information Network''' in 1995, by Greg Kouri and brothers ] and ] Musk. Initially, Global Link provided local businesses with an Internet presence,<ref name=Bio>{{cite book|last1=Vance|first1=Ashley|title=Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future|date=2015|publisher=HarperCollins|isbn=9780062301239}}</ref>{{rp|61}} but later began to assist newspapers in designing online city guides before being purchased by ] in 1999.<ref name="nyt20150217">{{cite news|last1=Napoli|first1=Lisa|date=17 February 1999|title=Compaq Buys Zip2 to Enhance Altavista|work=]|url=https://www.nytimes.com/1999/02/17/business/compaq-buys-zip2-to-enhance-altavista.html|url-status=live|access-date=10 December 2015}}</ref> '''Zip2 Corp.'''<ref>{{Cite web |date=1996-08-19 |title=Amendment |url=https://bizfileonline.sos.ca.gov/api/report/GetImageByNum/173053196115146151204024071172123112058093230152 |access-date=2023-08-02 |website=]}}</ref> was a company that provided and licensed online ] software to newspapers.<ref name="ep19971024">{{cite web|last1=Outing|first1=Steve|date=24 October 1997|title=Zip2 Plays Up National Network Card|url=http://www.editorandpublisher.com/PrintArticle/Zip2-Plays-Up-National-Network-Card|url-status=live|archive-url=https://web.archive.org/web/20141202000847/https://www.editorandpublisher.com/printarticle/zip2-plays-up-national-network-card/|archive-date=2 December 2014|access-date=10 December 2015|website=]}}</ref> The company was founded in ] as '''Global Link Information Network, Inc.''' on November 9, 1995,<ref>{{Cite web |date=1995-11-06 |title=Initial Filing |url=https://bizfileonline.sos.ca.gov/api/report/GetImageByNum/175249077046002161222048243162068086031216049174 |access-date=2023-08-02 |website=]}}</ref> by Greg Kouri and brothers ] and ] Musk. Initially, Global Link provided local businesses with an Internet presence,<ref name=Bio>{{cite book|last1=Vance|first1=Ashley|title=Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future|date=2015|publisher=HarperCollins|isbn=9780062301239}}</ref>{{rp|61}} but later began to assist newspapers in designing online city guides before being purchased by ] in 2000.


==History== ==History==
Elon got the initial business idea from a summer internship in 1994. A ] salesman came into his employer's office to pitch buying an online business listing in addition to the traditional listing in the Yellow Pages book.<ref>{{Cite web |last=Mejia |first=Zameena |date=2018-07-16 |title=How internships helped Elon Musk figure out his future |url=https://www.cnbc.com/2018/07/09/how-internships-helped-elon-musk-figure-out-his-future.html |access-date=2024-02-28 |website=CNBC |language=en}}</ref>
⚫ Global Link Information Network was founded in 1995 by brothers ] and ] Musk and ] in ] with money raised from a small group of ]s,<ref name="rollingstone">{{cite magazine|last1=Strauss|first1=Neil|date=15 November 2017|title=Elon Musk: The Architect of Tomorrow|magazine=]|url=https://www.rollingstone.com/culture/features/elon-musk-inventors-plans-for-outer-space-cars-finding-love-w511747|url-status=live|access-date=15 November 2017|quote="One thing he claims is he gave us a whole bunch of money to start, my brother and I, to start up our first company . This is not true," Musk says. "He was irrelevant. He paid nothing for college. My brother and I paid for college through scholarships, loans and working two jobs simultaneously. The funding we raised for our first company came from a small group of random angel investors in Silicon Valley."}}</ref><ref name="shower">{{cite news|last=Huddlestone Jr.|first=Tom|date=June 19, 2018|title=Elon Musk slept on his office couch and 'showered at the YMCA' while starting his first company|work=]|url=https://www.cnbc.com/2018/06/19/how-elon-musk-founded-zip2-with-his-brother-kimbal.html|url-status=live|access-date=September 4, 2020|archive-url=https://web.archive.org/web/20200818205314/https://www.cnbc.com/2018/06/19/how-elon-musk-founded-zip2-with-his-brother-kimbal.html|archive-date=August 18, 2020}}</ref><ref>{{Cite web|last1=Hull|first1=Dana|last2=Delevett|first2=Peter|last3=Owens|first3=Jeremy C.|date=2012-08-13|title=Greg Kouri, early investor in PayPal, dies in New York|url=https://www.mercurynews.com/2012/08/13/greg-kouri-early-investor-in-paypal-dies-in-new-york-2/|url-status=live|archive-url=|archive-date=|access-date=2021-01-30|website=]}}</ref> plus US$8,000 from Kouri.<ref name="twitterzip2">{{cite tweet |user=elonmusk |number=1211064937004589056 |date=December 28, 2019 |title=We started Zip2 with ~$2k from me plus my overclocked home-built PC, ~$5k from my bro & ~$8k from Greg Kouri (such a good guy — he is greatly missed). My Dad provided 10% of a ~$200k angel funding round much later, but by then risk was reduced & round would’ve happened anyway.}}</ref><ref name=Bio /> In ]'s biography of Elon Musk, it is claimed that the Musks' father, Errol Musk, provided them with US$28,000 during this time,{{r|Bio|p=Ch.4|q=Errol Musk gave his sons $28,000 to help them through this period, but they were more or less broke after getting the office space, licensing software, and buying some equipment}} but Elon Musk later denied this.<ref name="rollingstone" /> He later clarified that his dad provided around 10% of US$200,000 as part of a later funding round.<ref name="twitterzip2"/>

⚫ Global Link Information Network, Inc. was incorporated in November 1995 by brothers ] and ] Musk and Greg Kouri in ] with money raised from a small group of ]s,<ref name="rollingstone">{{cite magazine|last1=Strauss|first1=Neil|date=15 November 2017|title=Elon Musk: The Architect of Tomorrow|magazine=]|url=https://www.rollingstone.com/culture/features/elon-musk-inventors-plans-for-outer-space-cars-finding-love-w511747|url-status=dead|access-date=15 November 2017|quote="One thing he claims is he gave us a whole bunch of money to start, my brother and I, to start up our first company . This is not true," Musk says. "He was irrelevant. He paid nothing for college. My brother and I paid for college through scholarships, loans and working two jobs simultaneously. The funding we raised for our first company came from a small group of random angel investors in Silicon Valley."|archive-date=17 August 2020|archive-url=https://web.archive.org/web/20200817165150/https://www.rollingstone.com/culture/culture-features/elon-musk-the-architect-of-tomorrow-120850/}}</ref><ref name="shower">{{cite news|last=Huddlestone Jr.|first=Tom|date=June 19, 2018|title=Elon Musk slept on his office couch and 'showered at the YMCA' while starting his first company|work=]|url=https://www.cnbc.com/2018/06/19/how-elon-musk-founded-zip2-with-his-brother-kimbal.html|url-status=live|access-date=September 4, 2020|archive-url=https://web.archive.org/web/20200818205314/https://www.cnbc.com/2018/06/19/how-elon-musk-founded-zip2-with-his-brother-kimbal.html|archive-date=August 18, 2020}}</ref><ref>{{Cite web|last1=Hull|first1=Dana|last2=Delevett|first2=Peter|last3=Owens|first3=Jeremy C.|date=2012-08-13|title=Greg Kouri, early investor in PayPal, dies in New York|url=https://www.mercurynews.com/2012/08/13/greg-kouri-early-investor-in-paypal-dies-in-new-york-2/|url-status=live|archive-url=https://web.archive.org/web/20190602111156/https://www.mercurynews.com/2012/08/13/greg-kouri-early-investor-in-paypal-dies-in-new-york-2/|archive-date=2019-06-02|access-date=2021-01-30|website=]}}</ref> plus US$8,000 from Kouri.<ref name="twitterzip2">{{cite tweet |user=elonmusk |number=1211064937004589056 |date=December 28, 2019 |title=We started Zip2 with ~$2k from me plus my overclocked home-built PC, ~$5k from my bro & ~$8k from Greg Kouri (such a good guy — he is greatly missed). My Dad provided 10% of a ~$200k angel funding round much later, but by then risk was reduced & round would've happened anyway.}}</ref><ref name="Bio" /><ref>{{Cite web |last=Brecher |first=Elinor |date=June 15, 2018 |title=Gregory Anthony Kouri, early PayPal investor, dies at 51 |url=https://www.miamiherald.com/news/local/obituaries/article213257164.html |access-date=May 11, 2024 |website=Miami Herald}}</ref> In ]'s biography of Elon Musk, it is claimed that their father, ], provided the brothers with US$28,000 during this time,{{r|Bio|p=Ch.4|q=Errol Musk gave his sons $28,000 to help them through this period, but they were more or less broke after getting the office space, licensing software, and buying some equipment}} but Elon Musk later denied this.<ref name="rollingstone" /> He later said that his dad provided around 10% of US$200,000 as part of a later funding round.<ref name="twitterzip2" />


Initially, Global Link provided local businesses with an Internet presence by linking their services to searchers and providing directions.<ref name=Bio />{{rp|61}} Elon Musk combined a free ] database with a Palo Alto business database to create the first system.<ref name="Bio"/> Initially, Global Link provided local businesses with an Internet presence by linking their services to searchers and providing directions.<ref name=Bio />{{rp|61}} Elon Musk combined a free ] database with a Palo Alto business database to create the first system.<ref name="Bio"/>


In 1996, Global Link received US$3 million in investments from Mohr Davidow Ventures and officially changed its name to Zip2.<ref name="Bio"/> Davidow Ventures changed the fundamental strategy of Zip2 from localised direct to business sales to instead selling national back end software packages to newspapers to build their own directories.<ref name="Bio"/> Elon Musk was appointed the Chief Technology Officer and Rich Sorkin became the Chief Executive Officer. Zip2 trademarked "We Power the Press" as its official ] and continued to grow.<ref name="Bio"/> Zip2 struck deals with '']'', ], and ],<ref name="Bio"/> and its collaboration with newspapers made it a major component of "the U.S. newspaper industry's response to the online city guide industry", according to the '']''.<ref>{{cite web|last1=Outing|first1=Steve|date=31 August 1998|title=Zip2's Evolving City Site and Portal Strategy|url=http://www.editorandpublisher.com/news/zip2-s-evolving-city-site-and-portal-strategy/|url-status=live|archive-url=https://web.archive.org/web/20161018214803/https://www.editorandpublisher.com/news/zip2-s-evolving-city-site-and-portal-strategy/|archive-date=18 October 2016|access-date=22 June 2016|website=Editor & Publisher}}</ref> In 1996, Global Link received US$3 million in investments from Mohr Davidow Ventures and officially changed its name to Zip2. Davidow Ventures changed the fundamental strategy of Zip2 from localised direct to business sales to instead selling national back end software packages to newspapers to build their own directories. Elon Musk was appointed the Chief Technology Officer and Rich Sorkin became the chief executive officer. Zip2 trademarked "We Power the Press" as its official ] and continued to grow. Zip2 struck deals with '']'', ], and ],<ref name="Bio"/> and its collaboration with newspapers made it a major component of "the U.S. newspaper industry's response to the online city guide industry", according to the '']''.<ref>{{Cite web |last=Outing |first=Steve |date=31 August 1998 |title=Zip2's Evolving City Site and Portal Strategy |url=http://www.editorandpublisher.com/news/zip2-s-evolving-city-site-and-portal-strategy/ |url-status=dead |archive-url=https://web.archive.org/web/20161018214803/https://www.editorandpublisher.com/news/zip2-s-evolving-city-site-and-portal-strategy/ |archive-date=18 October 2016 |access-date=22 June 2016 |website=Editor & Publisher}}</ref>


By 1998, the company had partnered with about 160 newspapers to develop guides to cities, either locally or at full scale. According to chairman and founder Elon Musk, twenty of those newspapers led to full-scale city guides. '']'' reported that Zip2 also provided newspapers with an online directory, calendar, and email alongside their core offering.<ref name=nyt19980914>{{cite web|last1=Flynn|first1=Laurie|title=Online City Guides Compete in Crowded Field|url=https://partners.nytimes.com/library/tech/98/09/biztech/articles/14site.html|website=The New York Times on the web|access-date=10 December 2015|date=14 September 1998}}</ref> By 1998, the company had partnered with about 160 newspapers to develop guides to cities, either locally or at full scale. According to chairman and co-founder Elon Musk, twenty of those newspapers led to full-scale city guides. '']'' reported that Zip2 also provided newspapers with an online directory, calendar, and email alongside their core offering.<ref name=nyt19980914>{{cite web|last1=Flynn|first1=Laurie|title=Online City Guides Compete in Crowded Field|url=https://partners.nytimes.com/library/tech/98/09/biztech/articles/14site.html|website=The New York Times on the web|access-date=10 December 2015|date=14 September 1998|archive-date=15 September 2015|archive-url=https://web.archive.org/web/20150915070350/http://partners.nytimes.com/library/tech/98/09/biztech/articles/14site.html|url-status=live}}</ref>


==Product== ==Product==
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==Merger and acquisition attempts== ==Merger and acquisition attempts==
In April 1998, Zip2 attempted to merge with ], its main competitor. While Musk initially supported the merger,<ref>{{cite web|last1=Cooper|first1=Charles|date=3 April 1998|title=CitySearch, Zip2 to merge in $300 million deal|url=http://www.zdnet.com/article/citysearch-zip2-to-merge-in-300-million-deal/|url-status=live|archive-url=|archive-date=|access-date=22 June 2016|website=]}}</ref> he persuaded the board of directors not to proceed with it.<ref name="Startup Playbook">{{cite book|title=The Startup Playbook: Secrets of the Fastest Growing Start-Ups from the founding Entrepreneurs|publisher=Chronicle Books|author=Kidder, David; Hoffman, Reid|year=2013|location=San Francisco, CA|pages=2224–228|isbn=978-1452105048}}</ref> According to ''The New York Times'', the two companies "cited incompatibilities in cultures and technology" as the reason for the merger's failure.<ref>{{Cite news|url=https://www.nytimes.com/1998/05/18/business/2-web-ventures-end-merger-plan.html|title=2 Web Ventures End Merger Plan|date=1998-05-18|newspaper=The New York Times|issn=0362-4331|access-date=2016-06-17}}</ref> In April 1998, Zip2 attempted to merge with ], its main competitor. While Musk initially supported the merger,<ref>{{cite web|last1=Cooper|first1=Charles|date=3 April 1998|title=CitySearch, Zip2 to merge in $300 million deal|url=https://www.zdnet.com/article/citysearch-zip2-to-merge-in-300-million-deal/|url-status=live|archive-url=https://web.archive.org/web/20160812080235/http://www.zdnet.com/article/citysearch-zip2-to-merge-in-300-million-deal/|archive-date=12 August 2016|access-date=22 June 2016|website=]}}</ref> he persuaded the board of directors not to proceed with it.<ref name="Startup Playbook">{{cite book|title=The Startup Playbook: Secrets of the Fastest Growing Start-Ups from the founding Entrepreneurs|publisher=Chronicle Books|author=Kidder, David; Hoffman, Reid|year=2013|location=San Francisco, CA|pages=2224–228|isbn=978-1452105048}}</ref> According to ''The New York Times'', the two companies "cited incompatibilities in cultures and technology" as the reason for the merger's failure.<ref>{{Cite news|url=https://www.nytimes.com/1998/05/18/business/2-web-ventures-end-merger-plan.html|title=2 Web Ventures End Merger Plan|date=1998-05-18|newspaper=The New York Times|issn=0362-4331|access-date=2016-06-17|archive-date=2016-08-15|archive-url=https://web.archive.org/web/20160815031747/http://www.nytimes.com/1998/05/18/business/2-web-ventures-end-merger-plan.html|url-status=live}}</ref>


In February 1999, Compaq Computer paid US$305 million to acquire Zip2.<ref name="Bio" />{{rp|109|quote=Then, in February 1999, the PC maker Compaq Computer suddenly offered to pay $307 million in cash for Zip2.}} Elon and Kimbal Musk, the original founders, netted US$22 million and US$15 million respectively.<ref name="Bio" />{{rp|109|quote=Mohr Davidow had made back twenty times its original investment, and Musk and Kimbal had come away with $22 million and $15 million, respectively.}} <ref>{{cite web|last=Junnarkar|first=Sandeep|date=February 16, 1999|title=Compaq buys Zip2|url=http://news.cnet.com/Compaq+buys+Zip2/2100-1023_3-221675.html|url-status=live|archive-url=|archive-date=|access-date=|website=|publisher=]}}</ref> The company was purchased to enhance Compaq's ] web search engine.<ref name="nyt20150217" /><ref>{{Cite news|last=|first=|date=1999-02-17|title=Compaq Buys Software Firm Zip2|language=en-US|newspaper=]|agency=Reuters|url=http://articles.latimes.com/1999/feb/17/business/fi-8808|url-status=live|access-date=2016-06-17|issn=0458-3035}}</ref> In 1999,<ref>{{Cite web |title=Compaq buys Zip2 |url=https://www.nytimes.com/1999/02/17/business/compaq-buys-zip2-to-enhance-altavista.html |access-date=2024-07-02 |website=CNET |language=en}}</ref> Compaq Computer paid US$305 million to acquire Zip2. Elon and Kimbal Musk, the original founders, netted US$22 million and US$15 million respectively.<ref>{{cite web |title=Zip2 – Elon Musk's First Successful Startup |url=https://techiegamers.com/zip2-elon-musk/ |website=techiegamers.com |publisher=Techie + Gamers |access-date=13 July 2023}}</ref><ref>{{cite web|last=Junnarkar|first=Sandeep|date=February 16, 1999|title=Compaq buys Zip2|url=http://news.cnet.com/Compaq+buys+Zip2/2100-1023_3-221675.html|url-status=live|archive-url=https://web.archive.org/web/20141021004422/http://news.cnet.com/Compaq+buys+Zip2/2100-1023_3-221675.html|archive-date=October 21, 2014|access-date=|website=|publisher=]}}</ref> The company was purchased to enhance Compaq's ] web search engine.<ref name="nyt20150217">{{cite news |last1=Napoli |first1=Lisa |date=17 February 1999 |title=Compaq Buys Zip2 to Enhance Altavista |url=https://www.nytimes.com/1999/02/17/business/compaq-buys-zip2-to-enhance-altavista.html |url-status=live |archive-url=https://web.archive.org/web/20200709221217/https://www.nytimes.com/1999/02/17/business/compaq-buys-zip2-to-enhance-altavista.html |archive-date=9 July 2020 |access-date=10 December 2015 |work=]}}</ref><ref>{{Cite news|last=|first=|date=1999-02-17|title=Compaq Buys Software Firm Zip2|language=en-US|newspaper=]|agency=Reuters|url=https://www.latimes.com/archives/la-xpm-1999-feb-17-fi-8808-story.html|url-status=live|access-date=2016-06-17|issn=0458-3035|archive-date=2016-08-17|archive-url=https://web.archive.org/web/20160817220552/http://articles.latimes.com/1999/feb/17/business/fi-8808}}</ref>


==References== ==References==
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{{Elon Musk}} {{Elon Musk}}


]
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Latest revision as of 13:46, 5 December 2024

American software company

Zip2 Corp.
FormerlyGlobal Link Information Network (1995–1996)
Company typePrivate
FoundedNovember 6, 1995; 29 years ago (1995-11-06)
Founder
DefunctJuly 28, 2003 (2003-07-28)
(7 years, 8 months and 22 days)
FatePurchased by Compaq Computer
HeadquartersPalo Alto, California, United States
Area servedUnited States
Products
  • Zip2.com
  • Auto Guide
ParentCompaq Computer (1999–)
Websitezip2.com at the Wayback Machine (archived 2 February 1999)
Footnotes / references
This article is part of
a series aboutElon Musk
Personal
Companies
Politics
In popular culture
Related
Elon Musk's signature

Zip2 Corp. was a company that provided and licensed online city guide software to newspapers. The company was founded in Palo Alto, California as Global Link Information Network, Inc. on November 9, 1995, by Greg Kouri and brothers Elon and Kimbal Musk. Initially, Global Link provided local businesses with an Internet presence, but later began to assist newspapers in designing online city guides before being purchased by Compaq Computer in 2000.

History

Elon got the initial business idea from a summer internship in 1994. A Yellow Pages salesman came into his employer's office to pitch buying an online business listing in addition to the traditional listing in the Yellow Pages book.

Global Link Information Network, Inc. was incorporated in November 1995 by brothers Elon and Kimbal Musk and Greg Kouri in Palo Alto, California with money raised from a small group of angel investors, plus US$8,000 from Kouri. In Ashlee Vance's biography of Elon Musk, it is claimed that their father, Errol Musk, provided the brothers with US$28,000 during this time, but Elon Musk later denied this. He later said that his dad provided around 10% of US$200,000 as part of a later funding round.

Initially, Global Link provided local businesses with an Internet presence by linking their services to searchers and providing directions. Elon Musk combined a free Navteq database with a Palo Alto business database to create the first system.

In 1996, Global Link received US$3 million in investments from Mohr Davidow Ventures and officially changed its name to Zip2. Davidow Ventures changed the fundamental strategy of Zip2 from localised direct to business sales to instead selling national back end software packages to newspapers to build their own directories. Elon Musk was appointed the Chief Technology Officer and Rich Sorkin became the chief executive officer. Zip2 trademarked "We Power the Press" as its official slogan and continued to grow. Zip2 struck deals with The New York Times, Knight Ridder, and Hearst Corporation, and its collaboration with newspapers made it a major component of "the U.S. newspaper industry's response to the online city guide industry", according to the Editor & Publisher.

By 1998, the company had partnered with about 160 newspapers to develop guides to cities, either locally or at full scale. According to chairman and co-founder Elon Musk, twenty of those newspapers led to full-scale city guides. The New York Times reported that Zip2 also provided newspapers with an online directory, calendar, and email alongside their core offering.

Product

Zip2 allowed for two-way communication between users and advertisers. Users could message advertisers and have that message forwarded to their fax machine. Likewise, advertisers could fax users and users could view that fax using specific URLs.

One Zip2 product was called "Auto Guide". AutoGuide connected online newspaper users with local dealership or private party car sellers.

Merger and acquisition attempts

In April 1998, Zip2 attempted to merge with CitySearch, its main competitor. While Musk initially supported the merger, he persuaded the board of directors not to proceed with it. According to The New York Times, the two companies "cited incompatibilities in cultures and technology" as the reason for the merger's failure.

In 1999, Compaq Computer paid US$305 million to acquire Zip2. Elon and Kimbal Musk, the original founders, netted US$22 million and US$15 million respectively. The company was purchased to enhance Compaq's AltaVista web search engine.

References

  1. "Termination". Secretary of State of California. July 28, 2003. Retrieved August 2, 2023.
  2. "Amendment". Secretary of State of California. August 19, 1996. Retrieved August 2, 2023.
  3. Outing, Steve (October 24, 1997). "Zip2 Plays Up National Network Card". Editor & Publisher. Archived from the original on December 2, 2014. Retrieved December 10, 2015.
  4. "Initial Filing". Secretary of State of California. November 6, 1995. Retrieved August 2, 2023.
  5. ^ Vance, Ashley (2015). Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future. HarperCollins. ISBN 9780062301239.
  6. Mejia, Zameena (July 16, 2018). "How internships helped Elon Musk figure out his future". CNBC. Retrieved February 28, 2024.
  7. ^ Strauss, Neil (November 15, 2017). "Elon Musk: The Architect of Tomorrow". Rolling Stone. Archived from the original on August 17, 2020. Retrieved November 15, 2017. One thing he claims is he gave us a whole bunch of money to start, my brother and I, to start up our first company . This is not true," Musk says. "He was irrelevant. He paid nothing for college. My brother and I paid for college through scholarships, loans and working two jobs simultaneously. The funding we raised for our first company came from a small group of random angel investors in Silicon Valley.
  8. Huddlestone Jr., Tom (June 19, 2018). "Elon Musk slept on his office couch and 'showered at the YMCA' while starting his first company". CNBC. Archived from the original on August 18, 2020. Retrieved September 4, 2020.
  9. Hull, Dana; Delevett, Peter; Owens, Jeremy C. (August 13, 2012). "Greg Kouri, early investor in PayPal, dies in New York". The Mercury News. Archived from the original on June 2, 2019. Retrieved January 30, 2021.
  10. ^ @elonmusk (December 28, 2019). "We started Zip2 with ~$2k from me plus my overclocked home-built PC, ~$5k from my bro & ~$8k from Greg Kouri (such a good guy — he is greatly missed). My Dad provided 10% of a ~$200k angel funding round much later, but by then risk was reduced & round would've happened anyway" (Tweet) – via Twitter.
  11. Brecher, Elinor (June 15, 2018). "Gregory Anthony Kouri, early PayPal investor, dies at 51". Miami Herald. Retrieved May 11, 2024.
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  13. Flynn, Laurie (September 14, 1998). "Online City Guides Compete in Crowded Field". The New York Times on the web. Archived from the original on September 15, 2015. Retrieved December 10, 2015.
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  15. "Zip2 to offer online Auto Guide". No. 4. Joss Group. Seybold Report on Publishing Systems. October 1997.
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  17. Kidder, David; Hoffman, Reid (2013). The Startup Playbook: Secrets of the Fastest Growing Start-Ups from the founding Entrepreneurs. San Francisco, CA: Chronicle Books. pp. 2224–228. ISBN 978-1452105048.{{cite book}}: CS1 maint: multiple names: authors list (link)
  18. "2 Web Ventures End Merger Plan". The New York Times. May 18, 1998. ISSN 0362-4331. Archived from the original on August 15, 2016. Retrieved June 17, 2016.
  19. "Compaq buys Zip2". CNET. Retrieved July 2, 2024.
  20. "Zip2 – Elon Musk's First Successful Startup". techiegamers.com. Techie + Gamers. Retrieved July 13, 2023.
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  22. Napoli, Lisa (February 17, 1999). "Compaq Buys Zip2 to Enhance Altavista". The New York Times. Archived from the original on July 9, 2020. Retrieved December 10, 2015.
  23. "Compaq Buys Software Firm Zip2". Los Angeles Times. Reuters. February 17, 1999. ISSN 0458-3035. Archived from the original on August 17, 2016. Retrieved June 17, 2016.
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