Yahoo! Inc. (NASDAQ:YHOO) fell over 4.4 percent after the company revealed a massive data breach that feared Verizon, which might kill a deal to buy its core internet business. This marks its second massive data breach. Verizon is now looking to encourage Yahoo to adjust the terms of the acquisition agreement to reflect the influence of the data breaches.
According to Reuters, Verizon Communications, Inc. (NYSE:VZ) has threatened to go to court to get out of the deal, citing a material adverse effect if the deal is not repriced. Verizon still expects to go through with the deal, but is looking for “major concessions” in light of the most recent breach, according to another source familiar with the situation, who wished to remain anonymous because they are not permitted to speak to the media. The person did not know what kind of concessions Verizon is pushing for.
In October, Verizon had already said it was revising the deal after September’s breach disclosure. Later, they added to “review the impact of this new development before reaching any final conclusions” about whether to proceed. The company declined to comment beyond that statement on Thursday.
“Yahoo has fallen down on security in so many ways I have to recommend that if you have an active Yahoo email account, either direct with Yahoo of via a partner like AT&T, get rid of it,” Stu Sjouwerman, chief executive of cyber security firm KnowBe4 Inc., said in a broadly distributed email.