Verizon could reduce the price it will pay to acquire Yahoo, or walk away from the deal completely.
A legal representative for Verizon, Craig Silliman, told reporters: “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.”
He added that Verizon was “absolutely evaluating [the breach] and will make determinations about whether and how to move forward with the deal based on our evaluation of the materiality”.
A clause in the agreement of the takeover purchase states that Verizon can withdraw if an event “reasonably can be expected to have a material adverse effect on the business”.
You can’t really blame Verizon. If they’re going to spend close to $5 billion buying Yahoo, they’re going to want to be sure that there aren’t any nasty surprises still waiting to be unearthed.
For those of you haven’t been following the story, here’s a quick catch-up: