Editing LookSmart (section)

=== 1995–1998 ===
LookSmart was founded as Homebase in 1995 in [[Melbourne]], [[Australia]] by husband and wife [[Evan Thornley]] and Tracy Ellery, executives of [[McKinsey & Company]].<ref name=enterprise>{{cite book | url=https://books.google.com/books?id=OciNwH5k4O0C&pg=PA430 | title=Enterprise and Venture Capital: A Business Builders' and Investors' Handbook | first=Christopher | last=Golis | publisher=ReadHowYouWant.com | year=2010| isbn=9781459602946 }}</ref> [[Reader's Digest]] invested $5 million in the company for an 80% stake.<ref name="enterprise" /> The original concept of Homebase was to build a female and family-friendly [[web portal]] to supplement the Reader's Digest magazine.<ref name="enterprise" /> After leadership and strategy changes at Reader's Digest, which reduced RD's focus on its online business, RD wanted to shut down Homebase, which would have cost $4 million in payouts and other termination costs.<ref name="enterprise" /> The founders and former McKinsey's employee Martin Hosking instead proposed a cheaper leveraged buyout of Homebase.<ref name="enterprise" />

On 28 October 1996, the company launched its LookSmart search engine.<ref name=":2">{{Cite web|url=https://adage.com/article/news/deal-helps-readers-digest-web-rda-sets-site-launch-search-tool/76880/|title=DEAL HELPS READERS TO DIGEST THE WEB : RDA SETS SITE LAUNCH, SEARCH TOOL|last=Cleland|first=Kim|date=7 October 1996|website=[[Ad Age]]|language=en|archive-url=https://web.archive.org/web/20190203051806/https://adage.com/article/news/deal-helps-readers-digest-web-rda-sets-site-launch-search-tool/76880/|archive-date=3 February 2019|access-date=2 February 2019}}</ref> At launch, the search engine listed more than 85,000 sites and had a "[[Java (programming language)|Java]]-enhanced" interface.<ref name=":2" /> In June 1997, the search engine underwent a major redesign, dropping its original Java-based browsing system.<ref>{{Cite web|url=https://searchenginewatch.com/sew/news/2047963/the-search-engine-update-june-1997-number|title=The Search Engine Update, June 17, 1997, Number 7|last=Sullivan|first=Danny|date=16 June 1997|website=Search Engine Watch|language=en-US|archive-url=https://web.archive.org/web/20160414221045/https://searchenginewatch.com/sew/news/2047963/the-search-engine-update-june-1997-number|archive-date=14 April 2016|access-date=2 February 2019}}</ref>

LookSmart was sold back to the founders as well as Martin Hosking through a leveraged buyout in 1998, with Reader's Digest providing a $1.5 million loan and retaining about a 10% equity stake.<ref name="enterprise" /><ref name=":12">{{Cite news|url=https://www.crikey.com.au/2009/01/14/thornley-1-the-macquarie-connection/|archive-url=https://web.archive.org/web/20091122162124/https://www.crikey.com.au/2009/01/14/thornley-1-the-macquarie-connection/|url-status=dead|archive-date=22 November 2009|title=Thornley 1: the Macquarie connection|last=Crook|first=Andrew|date=14 January 2009|work=Crikey|access-date=13 May 2019}}</ref> Also in 1998, a search box was added to the LookSmart search engine along with People Search, [[Yellow pages]], Discussions and [[Shopping search engine|shopping search]].<ref>{{Cite web|url=https://www.searchenginejournal.com/10-years-of-looksmart-visual-timeline/3314/|title=10 Years of LookSmart – Visual Timeline|last=Baker|first=Loren|date=24 April 2006|website=Search Engine Journal|language=en|archive-url=https://web.archive.org/web/20071018174025/https://www.searchenginejournal.com/10-years-of-looksmart-visual-timeline/3314/|archive-date=18 October 2007|access-date=13 February 2019}}</ref> In May 1998, the company raised $2.3 million from Amwin and $6.0 million from [[Cox Media Group]] and [[Macquarie Group|Macquarie Bank]] and was valued at $23.3 million.<ref name="enterprise" /> On 21 December 1998, LookSmart stopped accepting [[Pornography|pornographic]] [[advertisements]].<ref>{{Cite web|url=https://www.cnet.com/news/looksmart-abstains-from-adult-advertising/|title=LookSmart abstains from adult advertising|date=21 December 1998|website=CNET|language=en|access-date=25 March 2019}}</ref>