Verizon is seeking a price cut or a possible exit from its pending $4.83 billion takeover of Yahoo following the revelation of a massive data breach, sources with knowledge of the discussions say.
Bloomberg reported that although a group in Verizon, led by AOL Chief Executive Officer Tim Armstrong, is still working on integrating Yahoo to the company, a separate team, led by Verizon General Counsel Craig Silliman, is reviewing the data breach disclosures and the company’s options.
Silliman’s team is assessing the damage from the breaches and is working to either end the deal or renegotiate the purchase at a lower price, an anonymous source told Bloomberg. Verizon is seeking to separate itself from any future legal fallout due to the Yahoo data breach by having Yahoo assume any lasting responsibility, the source said.
“We are confident in Yahoo’s value and we continue to work toward integration with Verizon,” a spokesperson for Yahoo said in a statement.
Yahoo on Wednesday announced what could be the largest computer hacking in history — the breach of more than 1 billion user accounts. The company said access to the accounts compromised personal information like phone numbers, birth dates and security questions. The breach occurred more than three years ago, Yahoo said in a statement.
The company said the newly revealed breach did not, however, compromise passwords, credit card or banking information.
