Yahoo said Wednesday that it plans to hollow itself out, spinning off its core business and leaving the company as little more than a way for shareholders to keep Yahoo's stake in Chinese e-commerce giant Alibaba Group.
The move underscores the profound change in how we interact with the Internet and how Yahoo failed to adapt. The company's key approach has been to package online content into a convenient jumping-off point. But now people are more likely to go to email, social networks or apps on their smartphones. Somewhere along the way, Yahoo got lost in the shuffle.
"At one point, AOL and Yahoo seemed like they were the Internet," said Brett Sappington, director of research for Parks Associates.
From the article "Why Yahoo faded: The Internet changed, but it didn't" by Stephen Shankland.
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