National Consumer News

Yahoo security breach could cost the company $1B in Verizon deal


Last month’s data breach could cost Yahoo $1 billion as Verizon looks to lower its previously agreed upon $4.8 billion purchase price.

The New York Post reports that a request was sent to Yahoo due the company’s recent headlines in the media.

“In the last day we’ve heard that [AOL CEO] Tim [Armstrong] is getting cold feet. He’s pretty upset about the lack of disclosure and he’s saying can we get out of this or can we reduce the price?” the source said of Verizon’s thinking.

Reports say that Yahoo’s deal team is pushing back and against negotiating the price. They believe a deal is a deal and Verizon shouldn’t change the terms of the companies deal.

However, if the court finds that the breach is an adverse event then that will automatically lower Yahoo’s value and Verizon may come back with a lower deal price point.

Yahoo’s next meeting about the deal will take place in two weeks, until then both companies continue to discuss the agreement.

Last month’s breach could prompt legal action against Yahoo and created a tool for government to review users emails.

This report contains information from

Photo by Justin Sullivan/Getty Images

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