When Yahoo revealed that it had been hacked and data on some 500 million accounts might have been stolen, it wasn't clear what the reprecussions would be on the pending purchase of the company by Verizon. Would they get cold feet? Well, according to the NY Post, the answer may be yes.
Supposedly, Verizon is not at all happy with the news and thinks perhaps a discount is in order. The number being bandied about is in the $1B range, which would amount to more than 25% of the $3.8B purchase price. Figuring out just what effect the whole thing actually will have on Yahoo's business is a rather difficult mess of a problem to put a number on.
But we can be sure the nice, round $1B number has little to do with that. How much of a discount Verizon can finagle out of the situation depends on how badly Yahoo needs to sell and how much trouble it would be to turn back the clock and take one of those other offers they had during the auction -- maybe with a smaller discount.
Verizon has been planning to merge Yahoo with its AOL division, boosting the company's presence in the content world in a major way. Would they really nix the deal over the 2014 hacking incident? I guess we'll just have to see.
ILECs, PTTs · Mergers and Acquisitions · Security