As of April 21, 2011, Yahoo Buzz will be no longer. Much like Digg, Yahoo Buzz is a social media site which focuses on news articles that are posted by users. The website was created to allow people to share and rank articles they felt were relevant to particular subjects, yet it never really gained much popularity.
Clearly Yahoo agreed that it was time to cut bait and announced in a statement that while the decision was a difficult one, it “will help us focus on our core strengths and new innovations.” This move was likely a wise one according to market analysts. Yahoo Buzz was created as a means to drive more traffic into the site in hopes of surpassing Google and Bing in the media market, yet the project was less fruitful than Yahoo had anticipated.
Just yesterday, Yahoo reported that it has seen a dramatic drop in profit and sales during the first quarter of 2011. Blame for the decline is being placed on the “headwind” of paying Microsoft, Yahoo’s partner, it’s promised 12% of net search revenues. The search engine also blamed Microsoft for its underwhelming advertisements.
Industry expert Danny Sullivan commented extensively on Yahoo’s decline in search revenue and proclaimed that the drop in search revenue “doesn’t mean that Yahoo as a company overall is a bad investment” and that “not hosting a search infrastructure may allow Yahoo to do other things.”
It certainly seems this is the mindset that Yahoo has adopted. It will be interesting to see what Yahoo’s next move will be, whether it be dropping other failed projects or taking on more promising business strategies.