Verizon Might Be Looking For Discount Or Exit From Yahoo Deal

Yesterday, I posted a story on Yahoo disclosing a second hack that is literally twice as bad as their first hack. At the time, I said this:

The fact that Verizon could continue to talk of a deal after the last Yahoo breach is amazing. If Verizon continues with an additional billion accounts being hacked, it shows that neither the market nor the establishment can penalize egregious data loss. 

Well, it seems that Verizon is looking for either a deep discount or an exit strategy from this deal. Here’s what Bloomberg has to say:

While a Verizon group led by AOL Chief Executive Officer Tim Armstrong is still focused on integration planning to get Yahoo up and running, another team, walled off from the rest, is reviewing the breach disclosures and the company’s options, said the person, who asked not to be identified discussing private information. A legal team led by Verizon General Counsel Craig Silliman is assessing the damage from the breaches and is working toward either killing the deal or renegotiating the Yahoo purchase at a lower price, the person said. One of the major objectives for Verizon is negotiating a separation from any future legal fallout from the breaches. Verizon is seeking to have Yahoo assume any lasting responsibility for the hack damage, the person said.

That has to be bad news for Marissa Mayer who is CEO of Yahoo. The brand because of the first hack took a serious ding to its reputation. This second hack will eviscerate what’s left of their reputation. That will make the company next to worthless and I doubt that Mayer could come up with a strategy to recover from that.

To quote Dr. Leonard “Bones” McCoy, Chief Medical Officer of the starship Enterprise: “He’s dead Jim.”


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