AfterDawn: Tech news

Yahoo's acquisition by Verizon is in trouble

Written by Andre Yoskowitz @ 15 Oct 2016 4:18

Yahoo's acquisition by Verizon is in trouble Almost a month after Yahoo disclosed a massive breach of their email data, it appears that the company's would-be buyer Verizon is now on the fence about the acquisition.
The company agreed to buy Yahoo's core assets for $4.8 billion earlier this year, a hefty price for the declining business. Yahoo disclosed the data breach, which took place in 2014, last month and announced that over 500 million accounts were affected.

"I think we have a reasonable basis to believe right now that the impact is material," said Verizon General Counsel Craig Silliman of the breach. "Material impact" suggests that Verizon believes the breach has affected Yahoo's financial value.

This is the first time Verizon has publicly shown doubt about the acquisition and those that have seen the agreement believe the scandal could trigger an escape clause and allow Verizon to walk away. If the telecom giant is allowed to walk away, there is literally zero chance Yahoo gets anywhere near $4.8 billion from another buyer.


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