NEW YORK (TheStreet) --Yahoo! (YHOO) confirmed last week that hackers breached its system back in 2014, compromising the accounts of 500 million users. Implications of the hack have a been a major topic of discussion, especially when considering that Verizon Communications (VZ) agreed to acquire Yahoo! back in July.

Recode managing editor Ed Lee joined Tuesday morning's "Squawk Box" on CNBC to discuss the breach and explain why Verizon has been willing to work with Yahoo! in resolving the matter.

"Verizon is clearly very upset about this, at the same time they want it. It's not so much the Yahoo! brand. There's an argument to be made that the Yahoo! brand is tarnished by this. But, they really want the ad tech, in their minds that's what they're really buying," Lee explained.

The acquisition of Yahoo!'s ad tech would allow Verizon to boost its mobile efforts, and differentiate its product from the other mobile services providers, he noted.

Regarding the $4.8 billion price tag on the deal agreed to in July, Lee believes a renegotiation of price is unlikely.

"I think at the end of the day Verizon still has deep pockets. It's not like they felt they were overpaying for this in the first place. Again they are buying the ad tech. in their mind that's the most important asset," Lee said.

Another significant factor which the hack has shed light on are the management struggles at Yahoo! a topic of discussion long before this breach. Lee believes there are fundamental questions left lingering regarding management as a result.

"Customer service, communicating with customers, communicating within in the company, what we're doing, what we're about, what we're trying to get done," he explained.