back in 2013 and was able to see this from the inside. Everyone would spend most of their time playing Diplomacy and just like the board game, it was impossible to win without stabbing someone in the back. Even if you survive one round, to survive the next you'd need to betray someone new. I have no idea why anyone would think "Survivor" would be a good work atmosphere -- but that's probably why I don't have a multi-million dollar salary.
I was happy being a contractor because (a) free food was good (b) I had no job security -- but neither did they and (c) pleasing my manager by doing good work was easy enough.
The other problem, was of course, most of their products are completely worthless. As one investor put it, Y! has three businesses worth keeping: mail (most popular provider in the world), Finance (most popular free stocks site), and Sports (again, most popular free site -- more users than ESPN). All three teams could easily fit inside a single building with some room to spare for day-to-day operational stuff (server maintenance and the like).
So cutting divisions like Games (bingo...seriously?) totally makes sense.