I really wish I had enough karma to downvote this opinion. It just reeks of ignorance and short-sightedness.

Polyvore is far from a "fashion startup". It has a very substantial user base and their whole proposal allows for very natural (and kinda cool) monetization strategies. Also, we don't know how much Yahoo paid for it, it could've been a real bargain; apparently around 60M, kind of cheap if you consider they've been pulling profit from years now.

You want examples of real companies that seem to be adrift? Try looking at Twitter. Or Google (although they have some real good products that keep the ship floating).