While I agree with the premise that seniors are a valuable demographic, the problem with Yahoo here is that there is nothing compelling about Yahoo that would make it the default choice for the next generation of seniors.
Yahoo grabbed a lot of users back when the web was young, and this is a cash cow for them, but it has have never figured out how to compete and grow their audience since.
Are seniors actually a valuable demographic? I agree large numbers of users are great, but I thought the general thinking was seniors, even if relatively rich, have established and difficult to change purchasing patterns; thus, 18-35, teens, etc. are worth a lot more to advertisers.