On Thursday, Bloomberg reported that Verizon is reconsidering its $4.8 billion purchase of Yahoo. After Wednesday’s announcement that 1 billion Yahoo account credentials had been stolen as far back as 2013, Verizon is reportedly considering scrapping the deal entirely. Verizon may also bargain to reduce the $4.8 billion price it agreed to pay for Yahoo in July.
One key for Verizon will be reducing the breach-related legal liability it could take on by purchasing Yahoo. A team led by Verizon’s general counsel is assessing the damage from the breaches, Bloomberg reports. This team is walled off from AOL CEO Tim Armstrong, who is leading the integration between Yahoo and Verizon. (AOL is a Verizon subsidiary.)
Verizon told Bloomberg in a statement:
“As we’ve said all along, we will evaluate the situation as Yahoo continues its investigation. We will review the impact of this new development before reaching any final conclusions.”
Yahoo stock has dropped over 4% in trading on Thursday.
Source: Business Insider
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