Why Yahoo's Panama Won't Be Enough

The Web's most visited site lags Google by billions in advertising revenue, and it's going to take more than its new ad-delivery technology to close the gap

Yahoo! had a rocky 2006. In fact, it had a Rocky Balboa kind of 2006. The pounding came from all sides. Investors—unwilling to hang in as Yahoo (YHOO) tried to match search giant Google (GOOG)—shied away, causing the stock price to fall roughly 40% to $25.56 over the past year. Social-networking sites, such as News Corp.'s (NWS) MySpace, created extra competition, jabbing at Yahoo's sides for advertising dollars. The organization even faced fighting from within, culminating in a leaked internal memo unfavorably comparing the company's efforts to peanut butter.

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