Oct 14, 2016 (LBO) – Verizon Communications Inc. may renegotiate its 4.8 billion dollar deal for Yahoo Inc. following the internet company’s recent disclosure of a data breach that affected more than 500 million accounts.
Verizon’s General Counsel Craig Silliman said it was reasonable to believe that the breach represented a material event that could allow it to change the terms of the takeover.
The breach occurred two years ago but was discovered after the merger deal was signed in July, the Wall Street Journal reported.
Shares of Yahoo fell 1.7 percent to 41.62 dollars Thursday, though much of the company’s market value reflects its investments in Alibaba Group Holding Ltd. and Yahoo Japan Corp.
The 500 million users affected by the 2014 Yahoo cyberattack are victims of the rising data breach issue across the world.
Yahoo said last month “state sponsored” hackers stole names, email addresses, dates of birth, telephone numbers and encrypted passwords. Yahoo said it discovered the breach in July. It didn’t notify Verizon until September.