Whenever I see a struggling company like this I ask myself the simple question. If the company didn't exist, would there be a need to create it? In the case of Yahoo I think the answer is no. If they disappeared tomorrow there would be no compelling reason for others to try and fill the gap it left behind. Hell, I doubt most people would even noticed they had gone. So they need to build a new business from the dying…
Currently, even at its 'dying' state, Yahoo has huge traffic from extremely loyal users who are mostly in the higher income (30+) age range. To dump that out the window would be an incredibly irresponsible business move. It's easy for a small, young company to pivot, but an old giant like Yahoo has to move slowly.
That being said, I think it would be a great move to really accept the growing age and therefore unique needs of this internet company rather than trying to follow new trends. That's truly their strongest leverage material at this point. Can they reinvent how the Internet is used by people over 40?