Yahoo Hack: Verizon Might Back Out from $4.8 Billion Deal, Yahoo Stocks Plummet
Verizon is considering backing out of its $4.8 billion planned purchase of Yahoo, Bloomberg reported Thursday.
Yahoo! shares plummeted after the company reported on Wednesday that 1 billion Yahoo! accounts credentials were stolen during an August 2013 data breach. Yahoo! stock dropped as much as 6.5 percent in trading on Thursday.
Verizon is now allegedly considering getting out of the deal with Yahoo!, or will bargain to cut the $4.8 billion price, according to Bloomberg .
A Verizon group headed by AOL Chief Executive Officer Tim Armstrong is focusing on integration planning between Yahoo and Verizon. Meanwhile, another team, walled off from the rest, is assessing the breach disclosures and the company’s options, Bloomberg reported.
A key objective for Verizon is negotiating a separation from any future issues concerning the data breach. The company is seeking to have Yahoo! take charge of any lasting responsibility for the hack, according to Bloomberg .
Verizon said in a statement to Bloomberg , “As we’ve said all along, we will evaluate the situation as Yahoo continues its investigation. We will review the impact of this new development before reaching any final conclusions.”
Yahoo! has not been able to determine how the 2013 breach occurred, but the company says it is the fault of a “state-sponsored actor.”
The stolen data included names, email addresses, telephone numbers, birth dates, passwords, and security questions and answers.
“The investigation indicates that the stolen information did not include passwords in clear text, payment card data or bank account information,” Yahoo! said in a statement. “Payment card data and bank account information are not stored in the system the company believes was affected.”