In December 2006, prior to the launch of Panama, Yahoo had announced that it was reorganizing the company. The reorganization became necessary as Yahoo found itself unable to generate enough revenues from search related advertising despite being the most visited website on the Internet.
Between July 2005 and July 2006, Yahoo's share in total online searches in the US went down from 30.5% to 28.8% (Refer to Table I for share of online searches by engine in July 2005 and July 2006).