I'm a small-time Yahoo shareholder and I know that Yahoo share prices have really been stagnating, so I can easily guess that its business is not going very well. But stopping a service that many people use is a major blow to the credibility of the company.
I'm sure they are not making this decision lightly but losing a breadth in its services as an internet behemoth could be quite negative for its business. Hopefully this streamlining will be beneficial overall for Yahoo's bottom line. We'll see.