---
title: "The Yahoo! formula"
description: "The repeatable cycle Masa built from his Yahoo! investment."
canonical: https://tomsharman.com/bookshelf/gambling-man/the-yahoo-formula/
updated: 2026-11-03
---

# The Yahoo! formula

> The repeatable cycle Masa built from his Yahoo! investment.

Lionel Barber's framework, from Gambling Man, pp. 66 to 147.

Framework 2 of 8 from [Gambling Man](https://tomsharman.com/bookshelf/gambling-man/index.md) by Lionel Barber. Category: Offers and pricing.

## The steps

1. **Find a cutting-edge US internet business.** Look for a strong American company early, as with Yahoo!, E*Trade or Morningstar.
2. **Attract the foreign partner into a joint venture.** Offer to be the gateway to Japan, with a Japanese version built on his terms.
3. **Own majority control of the venture.** Take a majority stake in the Japanese unit and often put SoftBank executives in charge.
4. **Take the units public.** List the venture, as with Yahoo! Japan on Jasdaq in November 1997.
5. **Use the proceeds for more deals.** Recycle the cash and the market value into the next round of bets.

## Where it comes from

From chapter: PART TWO: RISE AND FALL, pp. 66–147

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/the-yahoo-formula.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/the-yahoo-formula-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/the-yahoo-formula.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/the-yahoo-formula-dark.png