Verizon Signals Yahoo Data Breach May Affect $4.8 Bln Deal

(RTTNews) - Verizon Communications Inc. (VZ) signaled it may demand to renegotiate its $4.8 billion deal for Yahoo Inc. following the internet company's recent disclosure of a data breach that affected more than 500 million accounts.

Verizon's General Counsel Craig Silliman said it was "reasonable" to believe that the breach represented a material event that could allow it to change the terms of the takeover. He said it was up to Yahoo to prove the full impact of the data leak and prove it wasn't material.

The breach occurred two years ago but was discovered after the merger deal was signed in July.

After a prolonged auction, Verizon outbid other suitors by agreeing to buy Yahoo's core internet business with plans to close the deal by the end of March.