Re: Burning down the house to keep warm?
Nobody except for a few old DSL customers (AT&T, Kimo, KDDI) has anything to do with Yahoo yet they claim a profit?
The money isn't in direct user services; it's in the ad networks.
Verizon doesn't give a sh!t about Yahoo Mail, any more than they cared about AOL Mail when they bought AOL.
Yahoo and AOL both have large ad networks which display targeted ads on lots non-Yahoo and non-AOL properties. Each of those ad networks individually is smaller than Google / Doubleclick or Facebook, but combined they are larger.
VZW plans to integrate the Yahoo and AOL ad delivery networks with their own system that tracks users at the network level. The combined ADN will be a major player in the ad business and a huge cash cow that does not depend on new-subscriber acquisition.