In the late 1990s the web portal was a hot commodity. After the proliferation of web browsers in the mid-1990s many companies tried to build or acquire a portal, to have a piece of the Internet market. The web portal gained special attention because it was, for many users, the starting point of their web browser. Netscape became a part of America Online, the Walt Disney Company launched Go.com, and Excite and @Home became a part of AT&T during the late 1990s. Lycos was said to be a good target for other media companies such as CBS.

Many of the portals started initially as either web directories (notably Yahoo!) or search engines (Excite, Lycos, AltaVista, infoseek, Hotbot were among the earliest). Expanding services was a strategy to secure the user-base and lengthen the time a user stayed on the portal. Services which require user registration such as free email, customization features, and chatrooms were considered to enhance repeat use of the portal. Game, chat, email, news, and other services also tend to make users stay longer, thereby increasing the advertising revenue.^{[citation needed]}

The portal craze, with “old media” companies racing to outbid each other for Internet properties, died down with the dot-com flameout in 2000 and 2001. Disney pulled the plug on Go.com, Excite went bankrupt and its remains were sold to iWon.com. Some portal sites such as Yahoo! remain successful.