Not worthwhile for AOL and Yahoo is very different from non-viable. They might not have the resources to dedicate to sustaining it. It might not fit with their corporate strategy or vision. Maybe it makes money, but just not enough to justify their manpower.
The engineering team they need for other projects?
The technology which several startups have proven is easily recreated?
They aren't going to sell part of the AOL or Yahoo brand, so they could only really sell it if it had a unique name with which to preserve the user base under.
I dunno, the basic math shows you can charge people for storage and bandwidth and you can make money on top of it. I wouldn't right this product off yet.