it wasn't a search-based system. the idea was to curate the whole web. >> wall street now values yahoo! at around $700 million even though the company is barely profitable. >> with the success of netscape and the growth of these digital upstarts, yahoo! there was this energy that was not all in seattle. >> it's not really silicon valley versus what's going on in redmond, washington. it's more mankind versus microsoft. silicon valley is just one outpost against the evil empire to the north. >> this is silicon valley, the heart and soul of the nation's computer business. here microsoft is respected and feared as a powerful giant whose every footstep sends shivers through the entire industry. >> there's this emerging war basically between the silicon valley culture built up around the web and the microsoft culture up in redmond. it's not just a cultural clash but an economic clash,