Verizon warns it may walk away from $4.8bn Yahoo deal
Yahoo suitor Verizon has warned it may walk away from the $4.8bn buy-out amidst the ongoing fall-out of a huge data breach suffered by the internet business -potentially the largest yet recorded.
In a statement the telecoms firm warned that the breach, which affected some 500m users may have a ‘material’ impact on the outcome of that deal – either in the form of a reduced price or even see it walk away altogether.
Verizon’s legal representative at the discussions, Craig Silliman, said: “I think we have a reasonable basis to believe right now that the impact is material and we're looking to Yahoo to demonstrate to us the full impact. If they believe that it's not then they'll need to show us that."
Silliman also confirmed that Verizon was ‘evaluating’ the situation and ‘will make determinations about whether and how to move forward with the deal based on our evaluation of the materiality’.
Verizon has a get out clause in the deal which allows them to abandon their takeover in the event of a scenario which incurs a ‘material adverse effect on the business’.
Yahoo itself remains committed to the integration deal.