Digital commerce is big business, there’s no getting away from that, but Verizon has come out to imply that the proposed £3.9 billion purchase of Yahoo could in fact not take place following the news that the company held off from disclosing a massive 2014 data breach that compromised in the region of 500 million account holders.
Given the current situation, it is thought that Verizon might well require additional assurances in regards to the effects of the breach.
Across the pond, a New York Post report cited that Verizon had demanded a £816 million discount on the acquisition price after discovering the extent of the data breach as revealed by Yahoo, something they kept close to their chests for months after its discovery
However, Yahoo still anticipates the acquisition to go ahead regardless of the stumbling block. If it does go through, experts think the deal could be completed by the first quarter of 2017.
Yahoo is set to publish third-quarter earnings results after the close of business today (October 18th), although no earnings call or webcast for investors will take place because of the pending Verizon deal.
As a result of the situation, it is expected that Verizon will renegotiate an improved deal or walk away entirely, industry analysts have said.