Verizon Says Yahoo Email Data Breach Could Sink Deal

Verizon Communications Inc.'s attorney Craig Silliman told reporters that the U.S. wireless company has a rational basis to think Yahoo Inc.'s recent disclosure of a massive data breach of more than 500 million of its email accounts represented a material impact that could allow Verizon to pull out of its $4.38 billion deal to acquire the tech firm.

General Counsel Silliman told press people during a roundtable in Washington that the email breach could activate a clause within the agreement that would allow the Verizon to change the terms of the takeover or not press on with it. The counsel, who has been leading Verizon's review of the situation, refused to comment whether discussions are being held to renegotiate the acquisition price.

The takeover deal has a clause that states Verizon can withdraw from the agreement if a new development which could have a tangible and adverse effect on the business surfaces.

A Yahoo spokesperson expressed the company's confidence in Yahoo's value and that they will continue to make progress towards integration with Verizon.

Yahoo's shares closed down 1.75% at $41.62 while Verizon's shares were flat at $50.29, inching down 0.02%.


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