The main concept behind Yahoo! was born when its founders Jerry Yang and David Filo initiated a guide on their personal interests. The world wide success of the company was based on its goal to "connect people to their passions, their communities, and the world's knowledge" and the careful nurturing of its brand identity.

In 1995, Yahoo! developed into a corporation and decided to express through the logo the company's idea and mission. Then Yahoo! hired Organic, Inc., an interactive agency, to redesign their logo to the one we see today. The project was executed by Organic, Inc. designer Kevin Farnham. The current typeface comes from a T.26 font named Able, or a specific font named "Yahoo".

The original Yahoo logo which stands today is bright red in color and went well with the uncouth definition. The Yahoo philosophy back when the site was created was to be very quick and so possibly the simplicity of the logo went with that philosophy. Over time, the logo has changed and there exists a purple version.

The red Yahoo! logo officially debuted across all Yahoo sites on January 1, 1996.