American telecommunications company Verizon said that the recent mass data breach that happened at Yahoo might have an impact on the acquisition deal between the two companies, the media reported on Friday. This July, Verizon has expressed its desire to do business with, and purchase Yahoo for an eye-watering sum of $4.83bn (£3.95bn). Just after that, Yahoo said that hackers stole the data of almost 500 million users, a cybercrime which could very well be the biggest one in the history of the internet. Some security researchers even claimed the real number is closer to a billion.
Because of that, Verizon might ask for a lower price, or completely back out of the deal, the media are reporting.
"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," Verizon general counsel Craig Silliman said, Reuters reports.
"If they believe that it's not then they'll need to show us that." "We are confident in Yahoo's value and we continue to work towards integration with Verizon," Yahoo said in a statement. A contract clause states that the acquisition proposal can be withdrawn if an event "reasonably can be expected to have a material adverse effect on the business, assets, properties, results of operation or financial condition of the business."
Yahoo has been under a lot of pressure by its competition lately, and many analysts agree that the company has become irrelevant in many key market segments. Yahoo said that it suffered a $440 million loss in Q2 this year.
Image Credit: Dennizn / Shutterstock