"But where's the money?" It's not in search, as far as Yahoo is concerned. Having gigantic teams dedicated to tweaking search algorithms and running servers wa

"But where's the money?" It's not in search, as far as Yahoo is concerned. Having gigantic teams dedicated to tweaking search algorithms and running servers was obviously not working out to Yahoo's advantage in the long run... they were losing market share to Bing, and who knows how much they were spending to try to innovate in search? As far as I know, they've been losing money on searching for a long time. Is Yahoo ever going to be rolling in money again? No, and maybe not ever. However, they have a metric ton of products that can generate revenue: commercial licenses for service APIs, cloud computing resources, etc, and now they'll be focusing more on their advertising (which is REALLY where the money is these days). As far as staying afloat as a company not raking in the big dollars, this was probably the best bet without some major upheaval. They can focus and develop and sell things that actually might have a chance at making some money.