The firm said it will transition from a generic portal business to a tight network of interconnected vertical sites that focus on the emerging personal connectivity category.
Recently, startups providing so-called social networking services, such as Friendster and LinkedIn, have generated a great deal of attention and ink, although the business model is not clear yet.
The company will relaunch its portal as a search hub, and start drawing connections between its various properties, such as dating sites and personal homepage services.
Charging subscriptions for premium services while steadily chipping away at the free offerings is a strategy that has worked well for rivals such as Yahoo! Inc for the last few years.