Lately, it seems that some people are having trouble connecting pidgin to Yahoo Messenger services. The problem seems to be associated with the Yahoo server itself.
Solving the Yahoo Messenger problem
A temporary solution for this problem is to change the Pidgin YM server setting.
Go to Accounts->Select your YM screen name->Edit Account->Advance.
Then change the original value of “scs.msg.yahoo.com” to any of these ip address:
66.163.181.183, 66.163.181.166 , 66.163.181.169, 66.163.181.170, 66.163.181.172, 66.163.181.171, 66.163.181.181, 66.163.181.182
As shown on the screenshot :

Note that this is only a temporary solution and you should only use this as the last resort.
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