It was back in July earlier this year when Verizon Wireless officially made a move to acquire Internet giant Yahoo for a sum of $4.83 billion. But now that Yahoo has suffered yet another massive hack on its user accounts, the biggest mobile operator in the United States is reportedly asking for a lower acquisition price, and even considering to completely back out of the deal, according to a report published by Bloomberg.
While the Yahoo deal remains pending to date, the Big Red is finding more and more reasons to potentially abandon the idea of acquiring what once was one of the biggest powerhouse names in all of tech and the Internet. About three months ago, news broke out of a database hack that beset Yahoo, and that might have initially contributed to Verizon possibly considering not going through with the acquisition. But with another round of major hacks, the wireless carrier may have had enough. This time around, the latest hack is said to have affected over a billion user accounts. That number is easily twice the number of user accounts affected in the previous hack back in September.
As reported by Bloomberg, Verizon Wireless is said to be asking a discount of as much as a billion dollars on the acquisition price for the Yahoo deal. Bloomberg has cited unnamed sources, but the Big Red has not yet addressed the matter, other than issuing a statement that says it will continue to monitor the situation while Yahoo is in the process of investigating the latest hacks. As for Yahoo, it remains confident in its value, and is committed to push on with the merger with the major US wireless carrier.
Right now, a legal team headed by Craig Silliman, General Counsel of Verizon Wireless, is reportedly evaluating the damage caused by the newest round of hacks, and is said to be working to either adjust the final acquisition price, or terminate the deal altogether. The Big Red obviously wants nothing to do with the prospective future legal troubles that may befall as a result of the hacks.
According to Yahoo, over a billion user accounts were compromised some time in August 2013. Among the user accounts affected were over 150,000 US government employees. Needless to say, this might be a big deal, especially to Verizon’s shareholders, who may now be seeing Yahoo as damaged goods and even a possible liability.
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