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In response to Google's Gmail, Yahoo began to offer unlimited email storage in 2007.The company struggled through 2008, with several large layoffs.. was the most widely read news and media website – with over 7 billion views per month – ranking as the sixth-most-visited website globally in 2016. According to third-party web analytics providers Alexa and Similar Web, Yahoo!Yahoo Photos was closed on September 20, 2007, in favor of Flickr.On October 16, 2007, Yahoo announced that it would discontinue Yahoo 360°, including bug repairs; the company explained that in 2008 it would instead establish a "universal profile" similar to the Yahoo Mash experimental system.

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Yahoo closed Yahoo Buzz, My Blog Log, and numerous other products on April 21, 2011.

The Wall Street Journal stated that the purchase of Tumblr would satisfy Yahoo's need for "a thriving social-networking and communications hub." Data collated by com Score during July 2013 revealed that more people in the U. visited Yahoo websites during the month than Google; the occasion was the first time that Yahoo outperformed Google since 2011.