In their failed pursuit for profits, most Web search engines have transformed themselves from basic online tools that help people find their way around the Internet to portals that offer everything, including shopping, news, e- mail, weather and chat service.

But now, as investors demand Internet businesses to be profitable, and with revenues from online advertisers drying up, Web portals have returned to their roots in an effort to find success.

Online media company Yahoo Inc. (NASDAQ: YHOO) on Tuesday reported higher-than-expected third quarter sales and earnings, but also unveiled a decline in the number of advertisers on its site, raising new concerns for the company and the rest of the Internet sector.

Other sites, like AltaVista, have already begun to peel-off the extra layers and scale back to the basic search sites they once were. “The big battle in the portal business is over. The big three have won,” said David Marks, a Gartner Group analyst. “The next battle will be over who can find the best remaining niches out there.”

AltaVista, Excite, Lycos (NASDAQ: LCOS), and Infoseek were at their best in the mid-to-late-1990s when everyone was being introduced to the Internet. These companies began adding features to enhance the visitors experience and hopefully convince them to use their sites on a regular basis. They then became known as portals, attracting millions of users and reaping millions of dollars in online advertising.

However, about six months ago, investors decided Internet companies needed to show profits and have viable business plans. The capitalization of these companies declined as investors refused to throw money at dot-coms that didn’t have a market niche or any idea where they were going.

As the Internet companies ran out of money to advertise online, the Web portals began to experience a sudden and dramatic decrease in advertising revenue.

Now, as if in survival mode, Internet search engines are returning to what they do best, providing a place where most visitors go primarily en route to somewhere else.

These companies seem to realize that if they are ever going to make money they are going to do it by directing online traffic to other sites. Surveys consistently rank search queries as the second most popular activity on the Internet behind e-mail.

“Search is in a renaissance,” said AltaVista CEO Rod Schrock, whose company laid off 225 employees, one third of its work force last month.

Many analysts believe other leading Web portals Excite and Lycos are prime candidates for reorganization. Excite’s parent company is looking for a new CEO and Lycos is being bought by Spanish ISP Terra Networks (NASDAQ: TRRA).

It looks as if the Internet may play out looking much like television. A few major Web networks like Yahoo, Microsoft Network (MSN), part of the Microsoft Corp. (NASDAQ: MSFT) and America Online (NYSE: AOL). What’s left will be a lot of specialty sites. Keep an eye on the big three.