Email Hack Could Keep Verizon From Buying Yahoo
Or at least Verizon may want some of its money back
By Michael Harthorne,  Newser Staff
Posted Oct 13, 2016 4:23 PM CDT
Verizon may be rethinking its agreement to buy Yahoo after the latter revealed a massive data breach last month.   (AP Photo/Marcio Jose Sanchez, File)

(Newser) – It seems Verizon might be reconsidering its agreement to pay $4.8 billion to acquire Yahoo after the latter revealed last month that 500 million of its email accounts had been hacked, Reuters reports. Verizon had signed a deal to buy Yahoo in July, but a clause in the agreement says Verizon can back out if something happens that "reasonably can be expected to have a material adverse effect on the business ... or financial condition of the business." According to CNN, Verizon may now be looking to take advantage of that clause to either renegotiate the deal or get out of it altogether. After a Verizon lawyer said Thursday that the email hack likely fulfills that clause, Yahoo stock dipped nearly 2%. Analysts believe what amounts to one of the biggest data breaches in history could shave up to $200 million off Yahoo's value.

 

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