Ailing Yahoo! Can't Keep Up With the Times

After miraculously withstanding the dot-com crash, Yahoo is again poised to fall face first off a virtual cliff, with its plummeting stock hardly masked by national economic disrepair. But despite hemorrhaging users to Google, the company is still a huge presence on the Web, with 3 billion daily hits. So "what has gone wrong at Yahoo?" asks ABC's Michael S. Malone.

The company has "the wrong business model and the wrong management," Malone answers himself. Describing "a survivor of a different Internet era"—the "fairly barren" 90s—Malone foregrounds Yahoo's inability to entice new users with truly original products. Throw "complacent, risk averse, and conservative" team leaders into the pot alongside a looming recession, and you've got a recipe for Yahoo's financial flatline. (More Yahoo stories.)