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From last few days, Pidgin failed to authenticate many of our yahoo id’s. This was due to discontinued support to Yahoo protocol 16 (Source: Pidgin change log).

Yahoo Protocol 16 support, including new HTTPS login method; this should fix a number of login problems that have recently cropped up.

Pidgin released a new update to resolve this issue. Pidgin 2.5.7 is out. You can install it as given below.

1) Import the public key for Launchpad PPA for Pidgin Developers:

$ sudo apt-key adv --recv-keys --keyserver 67265eb522bdd6b1c69e66ed7fb8bee0a1f196a8

2) Add the following lines to /etc/apt/sources.list

deb jaunty main

3) Now, Run apt-get update and apt-get upgrade / apt-get install pidgin .

The PPA contains new pidgin releases for other versions of ubuntu ( dapper gutsy, hardy ,intrepid and karmic)

Once this is done, do restart your pidgin and find the yahoo authentication happening fine just like earlier.