organizing the internet. it quickly became the leading way to find things, and it was a directory-based system. it wasn't a search-based system. the idea was to curate the whole blood. >> wall street now values yahoo at around 700 million dollars, even though the company is barely profitable. >> with the success of netscape and the growth of the digital upstarts, yahoo. there was this energy that was not. >> it's not really silicon valley versus what's going up in washington. it's more mankind versus microsoft. so 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 buildup around the web and the microsoft