Key Difference: Facebook is the largest social networking website; Yahoo is a multinational internet corporation. Facebook is known for its quality to connect people socially. Yahoo has a lot of services but is mainly popular for emails and instant messaging.

Facebook was founded in February 2004 by Mark Zuckerberg with his college roommates. It is a website that allows users to add other users to their friends list, chat with them online, share pictures and videos, create own and view each other’s profiles, etc. It is a website that provides a platform to socialize with other people. Facebook can be termed as the ‘Virtual World’ for computer/internet geeks. People update their profiles, status, pictures and videos on Facebook. This has been a trend nowadays and a lot of people like it.

Facebook also brings people with same interests together to form a group so that the users can share the same genre things. Users can also create pages on Facebook to promote their interest, business, values, etc. Facebook also provides many other features like voice calling, video calling, exchange of files via messages, online games, etc.

Nowadays, Facebook has become an important medium for people and communities to express their views to the world. It also has become a voice of the people for supporting noble causes and disaster relief initiatives. Charitable Groups also use Facebook for mass communication and demands. Facebook also provides a feature to the users to publish ads for their own business/work. It also has many online games that a user can enjoy. Also, a user can upload his/her game.

Yahoo was started by Jerry Yang and David Filo in January 1994. It currently offers numerous products and services, including Yahoo! Search, Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Finance, Yahoo! Groups, Yahoo! Answers, advertising, online mapping, video sharing, fantasy sports and a social media website. Yahoo is an internationally used internet corporation with a lot of services. Yahoo! itself claims it attracts "more than half a billion consumers every month in more than 30 languages."

Yahoo is more mainly used for mails and as a search engine; Yahoo! Mail and Yahoo! Search. There are many other features provided by Yahoo. Yahoo! News is a newswire that provides news of different categories like finance, cricket, entertainment, etc. Yahoo! Answers is another service that is being provided by Yahoo which is a people-driven question-and-answer (Q&A) site. It is available in 12 languages and functions in favor of the people for spreading knowledge. The questions asked are answered by other people who know about it. In order to use all these services, one must have a Yahoo Account.

Another very popular service by Yahoo is Yahoo! Messenger. This is the service that allows instant messaging over internet. It also has features like voice call, video call, conference call, flash games during chats, etc. It is also used by a large number of people all the world. Yahoo has also developed its mobile application to enable more utility.

Yahoo and Facebook, both are equally significant as Facebook has everything for social networking. On the other hand, Yahoo has developed almost everything that an internet corporation can develop. After an agreement, Facebook also offers Yahoo! Messenger on their website; increasing the convenience for their users.

Image Courtesy: telegraph.co.uk, mashable.com