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  1. #1
    Registered User Enthusiast
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    68

    Verizon Looking at Yahoo Data Breach

    Reports are coming out that Verizon is looking at the giant Yahoo hack as a "material event" that would "reasonably" allow them to re-open terms of their asset purchase deal with Yahoo.

    I agree with Verizon, in concept.

    However, the question for Verizon is really if the onus is on Yahoo to prove the breach was not material, and if they could enforce any contract terms allowing them to change the deal or walk on a material adverse change.

    The other question is whether any of the other Yahoo suitors are still waiting in the wings. In which case, Yahoo may be happy to let Verizon walk if re-negotiations get too tough.

    Verizon may well be the party that has to ask itself how much it wants this deal.


  2. Verizon Looking at Yahoo Data Breach
  3. #2
    Registered User Semi Pro Member
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    270
    If there is a haircut, the difference should come directly from Marissa Mayer's parachute.

  4. #3
    Registered User Senior Member
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    100
    The life of investors: Long suffering Yahoo shareholders do not even get to breathe a sigh of relief even when they make a good deal to sell a majority of their assets.

    The reason: Corporate executives are allowed to run amok, and rarely, if ever, are required to answer to their shareholders/owners/bosses.

  5. #4
    Registered User Enthusiast
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    52
    Okay, now a second breach. And this one twice as big as the first. So how does Verizon not get to say this is a material adverse change? And even if they want the assets, how is there not a haircut or some protection for the liability from a combined 1,500,000,000 hacked consumer email accounts?

  6. #5
    Registered User Enthusiast
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    51
    I cannot imagine what Verizon would want from yahoo at this point.

    The assets they were interested in were the customers - to direct more advertising at them.

    But after this second hack is there any chance Yahoo will have many customers left by the time the deal closes?

  7. #6
    Registered User Junior Member
    Posts
    35
    Quote Originally Posted by Toman23 View Post
    If there is a haircut, the difference should come directly from Marissa Mayer's parachute.
    Well, if and when the Verizon deal ever closes, Mayer and others will be out. And Yahoo! will change its name to Altaba.

  8. #7
    Registered User Semi Pro Member
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    270
    CLosing has now been pushed back by at least 3 months. Thanks in no part to two massive data breaches and a SEC investigation.

    Looks like Yahoo may actually manage to blow this deal.

  9. #8
    Registered User Semi Pro Member
    Posts
    270
    I stand corrected. It looks like the deal will go through. But Yahoo and Verizon are working on a price cut that rumors place in the $300 million range.

  10. #9
    Registered User Semi Pro Member
    Posts
    336
    The final haircut is in, and it comes at $350 million. This works out to about a 7% price reduction.

    I would have thought they could have done better. But maybe the final satisfaction will be firing the slew of incompetents at Yahoo.

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