http://www.google.com/hostednews/ap/article/ALeqM5hcnID6-ItVGcVtZCQgLZJEiO59KAD953E2C00

Yahoo revamps e-mail to become more social
10 hours ago

SAN FRANCISCO (AP) — Yahoo Inc. has finally started to roll out new
features designed to make its e-mail service more like the popular
online hangouts Facebook and MySpace, following through on a promise
made nearly a year ago.

With the additions announced Monday, Yahoo's roughly 275 million
e-mail users will have the option of setting up their accounts so they
can highlight communications from other people with whom they have
formed an online connection.

The concept mirrors a premise that has turned privately held Facebook
and News Corp.'s MySpace into two of the Web's hot spots for
socializing over the past three years — a period that has coincided
with a wrenching downturn at Yahoo.

After registering their profiles on Facebook and MySpace, people can
use the sites to form online bonds with their friends and family so
they can share personal information and keep track of each other's
activities.

Yahoo also is copying Facebook and MySpace by opening its e-mail
service to applications created by outside programmers. In a test that
started Monday among a small number of e-mail users, Yahoo began
offering applications developed for finding photos stored in their
mailboxes, transferring information to blogs and sharing tips about
movies.

The changes will turn Yahoo's e-mail service into a "scrapbook for
your life," said John Kremer, a company vice president. "We hope
opening up Yahoo mail will have a game-changing influence on the
industry."

Yahoo co-founder Jerry Yang offered the first glimpse at the
Sunnyvale-based company's broader e-mail ambitions during a
presentation at a consumer electronics show held in January.

Introducing the changes took time because Yahoo wanted to ensure it
got the technology right and hoped to minimize disruption for users,
said Ash Patel, who heads up the company's products. "We are very
deliberate in the way we roll things out," he said.

The e-mail overhaul took so long to complete that Yang is now on the
way out as Yahoo's chief executive. With Yahoo's stock price and
earnings eroding under his leadership, Yang plans to step down as soon
as a new CEO is found.

Besides tweaking its e-mail service, Yahoo plans to upgrade its
toolbar for Web browsers. The improvements include the ability to
check new messages coming into Yahoo e-mail and competing services as
well as to receive notifications about their online connections'
latest activities.

As it introduces new twists to its Web site, Yahoo also is planning to
phase out less popular services as part of an effort to reduce its
annual expenses by $400 million. Yahoo is reaping most of the savings
by laying off 1,500 workers in a purge that began last week.

Patel on Monday declined to discuss which services Yahoo will
eliminate, saying more information will be passed on next year.

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