Yahoo hollows itself out further with Facebook deal

Yahoo is doing a deep dive with Facebook features today with an overhaul to its profile system and homepage.

Now the Sunnyvale, Calif.-based company’s users can link their Facebook accounts to Yahoo’s homepage or mail and see a stream of updates from friends. They’ll also be able to share their activity across Yahoo’s portfolio of websites including TV, movies, Flickr and sports. The company is also revamping its profile system, rebranding it as Yahoo! Pulse and giving it a new privacy dashboard.

The company was quick to point out all of its social efforts over the last year, including a deal with social gaming company Zynga, the acquisition of Asian location-sharing network Koprol and its partnership with Twitter to bring real-time search to the site.

The issue is it’s increasingly hard to see what Yahoo uniquely offers to its audience. The company has long operated from the premise that it should be a one-stop shop for users or a web’s start page for the world. But signing a deeper agreement with Facebook ultimately may be a stopgap measure as its users defect to other destinations. The social network recently outpaced the web portal as the leading display advertising network earlier this year.


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