Yahoo will close its Yahoo Photos service in favour of photo-sharing site Flickr. Yahoo bought Flickr just over two years ago. Flickr is considered by many experts to be a pioneer of Web 2.0.
"People are changing the way they use photography, and we have decided to shift our focus accordingly," said a Yahoo spokeswoman said via email.
"Digital photography is evolving from its original purpose as a means to preserve memories into a social activity that allows people to communicate and connect."
The move doesn't come as a complete surprise. Yahoo underwent a significant reorganisation in December to better focus its efforts. Weeks before the reorganisation, a scathing internal memo had leaked.
It said Yahoo had to stop spreading a thin layer of "peanut butter" across myriad opportunities and instead focus on key areas. In that memo, Yahoo Photos and Flickr were specifically highlighted as an overlap example.
Still, until now, Yahoo executives had maintained publicly that Yahoo was big enough for the two services because they served two different types of users. In March, Flickr co-founder and general manager Stewart Butterfield told us that there are fundamental differences in the way users of Flickr and Yahoo Photos act online.
"It's not like young people use Flickr and old people use Yahoo Photos. The age range is actually pretty similar. It's more about how people feel about sharing their lives online and even more simply about how into the internet people are.
"The Flickr user is more interested in interacting, in the community aspects," he said.