Verizon May Back Out of Yahoo Purchase over Massive Hack

(Reuters) — Verizon Communications Inc (VZ.N) said on Thursday it has a “reasonable basis” to believe Yahoo Inc’s (YHOO.O) massive data breach of email accounts represents a material impact that could allow Verizon to withdraw from its $4.83 billion deal to buy the technology company.

Verizon’s general counsel Craig Silliman told reporters at a roundtable in Washington the data breach could trigger a clause in the deal that would allow the U.S. wireless company not to complete it.

“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 said, declining to comment on whether talks are under way to renegotiate the purchase price.

Asked for comment, a Yahoo spokesman said: “We are confident in Yahoo’s value and we continue to work towards integration with Verizon.”

Read the rest of the story at Reuters.


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