Yahoo! Mail
Yahoo! made a deal with the online communications company Four11 for co-branded white pages. Marvin Gavin, who worked at Four11 as the Director of International Business Development, said "We always had a bias about being acquired by Yahoo. They were more entrepreneurial than Microsoft. We had a great cultural fit – it made a lot of sense." In the end, Yahoo! acquired Four11 for $96 million. The purpose behind acquiring Four11 was the company's RocketMail webmail service, which launched in 1997. Yahoo! announced the acquisition on October 8, 1997, close to the time that Yahoo! Mail was launched. Yahoo! chose acquisition rather than internal platform development, because, as Healy said, "Hotmail was growing at thousands and thousands users per week. We did an analysis. For us to build, it would have taken four to six months, and by then, so many users would have taken an email account. The speed of the market was critical."
History of Gmail
In January 2005, security experts discovered a critical flaw in the handling of Gmail messages that would allow hackers to easily access private emails from any Gmail user's account. This was posted with detailed information to popular technology site Slashdot at 9:23 a.m. PST on 12 January 2005. On 13 January 2005, developers at Gmail announced that they had fixed the problem and that the security flaw had been patched. Despite Gmail's status as a beta application, concerns were raised among some users who were using Gmail as their primary mail account. On 1 April 2005, exactly one year after the initial release, Gmail increased the mailbox size to 2 GB, advertising it as 2GB plus and introduced some other new features, including formatted editing which gave users the option of sending messages in HTML or plain text.