It's more or less an open secret that Yahoo?%! has been busy falling apart for the last few years. They've failed to produce anything useful, they've lost market share, and they've become a bit of a joke all around.
A few months ago, Microsoft, the other market leader in frighteningly crap webservices, attempted to buy them. Yahoo!!§^&!!! wasn't having any of it, and is resisting. Given that they're facing a battle with their shareholders, you might reasonably expect them to sort themselves out, right? Well, not quite.
They have, in fact, fired hundreds of their staff, reorganised, launched two rather pointless services (Yahoo Video and the Flickr Video thing) to compete with each other, with the Flickr one being crippled for the benefit of the awful Yahoo?!!? one.
And now, they are apparently muttering about putting Google's ads on their sites instead of their own. Poor Yahoo. There was a time when they were the biggest, a time when they had the opportunity to buy Google for a pittance. And now look at them. About to be bought by also-dying (have you seen Vista? Office 2007? Poor, confused Server 2008? Live Spaces?!) Microsoft, and relying on the company they once turned down for money.
For the record, I hope that Microsoft doesn't manage to buy them. If Yahoo has done one sensible thing, it has been to leave del.icio.us, which they own, well enough alone. It's the only one of their services that I use. I just know that Microsoft would do something unutterably horrible to it; again, have you seen Live Spaces?