Zip2

Zip2 Corporation was an American software company that provided an online city guide and mapping software for newspapers. Founded in 1996 in Palo Alto, California, by Elon Musk and his brother Kimbal Musk, the company developed tools that allowed newspapers to offer additional web-based services such as business directories, maps, and directions.

It attracted venture funding, including support from Mohr Davidow Ventures, and grew by partnering with major papers to offer digital city guides to their readers. By the late 1990s Zip2 had expanded its network and product offerings to multiple newspapers.

In 1999, Compaq Computer Corporation acquired Zip2 for roughly $340 million (approximately $307 million in cash and $34 million in stock options). Elon Musk's stake was valued at about $22 million. The acquisition helped fund subsequent ventures such as X.com, which later evolved into PayPal.

After the sale, Zip2's technology played a role in Compaq's online city services, including the Digital City portal. The company is recognized as an early example of the online media infrastructure that integrated business directories with geographic search capabilities.