That's the clue; the company is doing OK, by focussing on its 'social networking' sites. Ok - but nothing compared to myspace etc., and there's no certainty of doing better - they may get squeezed out of a competitive sector.
As for search ... don't go there ;)
Basically, they've lived to fight another day, as the market has warmed to a couple of sites they bought a year or two ago. Not much evidence of innovation, though.
My bet is a takeover, probably Yahoo!, within 12 months.
NOTE: I have no insider or any other knowledge of their activities, and this note does NOT constitute investment advice in any way, shape or form ... cheez, I could be WRONG :)