Zip2

Internet software and directory services for newspapers and local merchants.

InternetLocal searchMedia softwareDot-com era

Acquired^{Source [6]}^{Source [7]}Last verified Oct 2, 2026

About Zip2

Zip2 developed, hosted and maintained consumer websites for newspapers and other media companies, giving them local city guides and directories they could offer to readers and local merchants. By February 1999 about 200 Zip2-powered sites covered the top 50 U.S. metropolitan areas.^{Source [5]}

Its media customers included the Mirror Group, Classified Ventures, The New York Times Company, Knight Ridder, Morris Communications, and newspapers in the Hearst, Times Mirror, Media General, Pulitzer Publishing and Freedom Communications chains. A professional services group helped those companies and their local merchants build online services.^{Source [5]}

Elon Musk co-founded Zip2 in 1995 with his brother Kimbal Musk and Greg Kouri, and held roles including chairman, CEO and CTO until February 1999. By the time of its sale the company was privately held, based in Mountain View, California, and led by CEO Derek Proudian.^{Source [1]}^{Source [2]}^{Source [4]}^{Source [3]}^{Source [5]}

A planned merger with CitySearch was called off in May 1998, with both companies citing differences in technologies, product strategies and business models. Compaq bought Zip2 in April 1999 for an aggregate price of $341 million and made it a division of AltaVista; in August 1999 Compaq sold a majority interest in AltaVista, including Zip2, to CMGI.^{Source [8]}^{Source [6]}^{Source [7]}

What happened

Co-founded by Elon Musk in 1995. Compaq agreed to buy it in February 1999 and completed the purchase in April 1999 for an aggregate price of $341 million, making it a division of AltaVista, which Compaq sold a majority stake in to CMGI later that year. It no longer operates as a separate company.^{Source [1]}^{Source [5]}^{Source [6]}^{Source [7]}^{Source [9]}

Timeline

1999-08Compaq sold an 81.5 percent equity interest in AltaVista, Shopping.com and Zip2 to CMGI.^{Source [7]}
1999-04-05Compaq completed the purchase and Zip2 became an operating division of AltaVista.^{Source [6]}
1999-02-16Compaq announced a definitive agreement to buy all of Zip2's shares for cash.^{Source [5]}
1999-02Elon Musk's roles at Zip2 ended.^{Source [1]}
1999-02Zip2-powered sites reached about 200, covering the top 50 U.S. metropolitan areas.^{Source [5]}
1998-05Zip2 and CitySearch called off a planned merger.^{Source [8]}
1995Founded by Elon Musk, Kimbal Musk and Greg Kouri.^{Source [1]}^{Source [2]}^{Source [4]}^{Source [3]}

Products and brands

Local portal platform: Hosted platform that media companies used to run local city guide and directory websites.^{Source [5]}
Professional Services: Consulting that helped media companies and their local merchants build online services such as e-commerce.^{Source [5]}

How it makes money: Sold its internet platform and services to newspapers and other media companies, which used Zip2-powered sites to serve local readers and local merchants.^{Source [5]}

Leadership

Derek Proudian	CEO^{Source [5]}	Until 1999
Ronnie Ward	General manager of Zip2 and AltaVista vice president^{Source [6]}	Since 1999
Elon Musk	Co-founder; roles including chairman, CEO and CTO^{Source [1]}	1995 to 1999

Funding and financials

Sale price: $341 million aggregate, including $307 million in cash (April 1999)^{Source [7]}

People on Founded, and where they went next

1 person on record, connected to 10 other companies.

Person	Here	Also built
Elon Musk	Co-founder1995 to 1999	xAI2023 to 2026AcquiredX Corp.2022 to 2025AcquiredThe Boring Company2017ActiveNeuralink2016ActiveOpenAI2015 to 2018ActiveSolarCity2006 to 2016AcquiredTesla2004 to nowIPOSpaceX2002 to nowIPOPayPal2000IPOX.com1999Merged

Sources

PayPal, Inc. Registration Statement (Form S-1/A), SEC EDGAR, 2002-02-14. Accessed Oct 2, 2026.
Tesla, Inc. 2025 Proxy Statement (DEF 14A), SEC EDGAR, 2025-09-17. Accessed Oct 2, 2026.
Zip2, Wikipedia. Accessed Oct 2, 2026.
Gregory Kouri obituary, Legacy.com, 2012. Accessed Oct 2, 2026.
Compaq Computer Corporation Form 8-K: agreement to acquire Zip2 Corp., SEC EDGAR, 1999-02-17. Accessed Oct 2, 2026.
Compaq Computer Corporation Form 8-K: completion of Zip2 acquisition, SEC EDGAR, 1999-04-05. Accessed Oct 2, 2026.
Compaq Computer Corporation Annual Report (Form 10-K) for 1999, SEC EDGAR, 2000-02-23. Accessed Oct 2, 2026.
CitySearch & Zip2 scrap merger plans, Tech Monitor, 1998-05-18. Accessed Oct 2, 2026.
Compaq buys Zip2 for over $220 million, The Register, 1999-02-16. Accessed Oct 2, 2026.

Suggest a correction / Editorial policy