The new logo sports all capital letters, which are shaded to show the letter Y within each letter. It is capped off with a tilted exclamation mark.
"We wanted a logo that stayed true to our roots (whimsical, purple, with an exclamation point) yet embraced the evolution of our products," wrote Kathy Savitt, the company's chief marketing officer, in an online statement.
Yahoo revealed the new logo on Tumblr, a microblogging service the company purchased for $1.1 billion in May. On the site, Savitt, posted two versions of the logo: one with purple lettering and a white background, and vice-versa.
"Over the past year, there’s been a renewed sense of purpose and progress at Yahoo!, and we want everything we do to reflect this spirit of innovation. While the company is rapidly evolving, our logo — the essence of our brand — should too," Savitt explained in an online statement.
In the summer of 2012, Yahoo hired Google executive Marissa Mayer as its CEO.
Mayer brought in a number of changes, including banning employees from working from home. She focused on acquiring internet services, like Tumblr, to boost traffic on mobile devices.
While Mayer's moves have gathered attention, they did not significantly help the company's revenue.
It is the first time Yahoo has changed its logo in nearly two decades. Shortly after Jerry Yang and David Filo incorporated Yahoo in 1995, employees tweaked the logo.
Yahoo built momentum for Thursday's reveal by posting rejected logo designs daily for 30 days.
"We’re really happy with where we ended up. We hope you are too!" wrote Mayer on her Tumblr page.