Verizon’s (NYSE: VZ) $4.4 billion acquisition of Yahoo (NASDAQ: YHOO) might not be happening after all. It seems after Yahoo’s hacking scandal, which resulted in an unprecedented data breach, Verizon has second thoughts.
Verizon General Counsel Craig Silliman said in a statement, “I think we have a reasonable basis to believe right now that impact is material… And we’re looking to Yahoo to demonstrate to us the full impact if they believe it’s not. They’ll need to show us that, but the process is in the works,” the Washington Post reported.
Earlier in July, the two companies have reached a takeover deal, according to which Verizon was supposed to but Yahoo and merge it with AOL. Since then several bad news surfaced for Yahoo. Besides the largest ever data breach, it was also reported that the US government had Yahoo surveil user emails for intelligence purposes. Verizon now investigates whether or not the chain of bad news has a material impact on Yahoo’s value, and if yes, how serious it is.