Verizon considers changing Yahoo deal after latest breach

NEW YORK: Verizon Communications Inc is looking at ways to modify its $4.8 billion deal to buy Yahoo Inc’s core Internet business after the technology company disclosed a second massive data breach, sources said.
Yahoo Inc shares fell almost 5 per cent after the breach of data belonging to more than 1 billion users was disclosed, following another large hack reported in September.
Verizon is seeking to persuade Yahoo to amend the terms of the acquisition agreement made in July to reflect the economic impact of the data breaches, according to people familiar with the matter.
The telecommunications company has threatened to go to court to get out of the deal if it is not repriced, citing a material adverse effect, said the sources, who asked not to be identified because the negotiations are confidential.
Verizon still expects to go through with the deal, but is looking for “major concessions” in light of the most recent breach, according to another source familiar with the situation, who wished to remain anonymous because they are not permitted to speak to the media.
The person did not know what kind of concessions Verizon is pushing for.
Verizon had already said in October it was reviewing the deal after September’s breach disclosure. Late on Wednesday, it said it would “review the impact of this new development before reaching any final conclusions” about whether to proceed.
The company declined to comment beyond that statement on Thursday.
Verizon shares rose 0.5 per cent to $51.89, in line with the S&P 500 Index. — Reuters