A Verizon executive has said the company is unsure whether it will be going any further forward with its $4.8 billion purchase of Yahoo. The announcement comes just weeks after the former web giant disclosed a second massive date breach had occurred.
Marni Walden, a Verizon executive vice president said the firm is studying the potential long term impact that a data breach in 2013 that affected more than one billion accounts may have. Yahoo only publicly disclosed news of the breach in December of 2016.
The hack was separate from a previously disclosed breach that occurred in 2014 that exposed five hundred million Yahoo accounts.
Walden made the comments at an investor conference in Las Vegas when directly answering a question about whether the near $5 billion takeover would proceed considering the recent hacking revelations: “Unfortunately, I can’t sit here today and say with confidence one way or the other because we still don’t know.”
Walden’s vocal response isn’t a lone voice in the dark either. Her answer echoes the concerns of other Verizon executives who have questioned whether the company may have paid too much for Yahoo in light of the security breaches.
Questions have also been asked as to just how long executives and top management at Yahoo knew about the breaches, and if they deliberately held back on revealing the news until after the initial takeover bid by Verizon had been finalised.
Walden did go onto to tell attendees at the Vegas conference that the deal with Yahoo still made sense, pointing to the fact that Verizon may still be very interested in the Yahoo deal, but would hope to pay substantially less than the $4.8 billion currently on the table.
It’s a messy end to Yahoo’s once proud standing in the tech sector. The company was once valued at $100,000,000, but a recent history of failed spinoffs, strategic blunders, falling market share, and a continual brain drain of top employees jumping ship to competitors has tarnished the firm’s reputation. News of the 1 billion hacked accounts also broke records, handing Yahoo the spurious title of also being the owner of the largest ever public disclosed hack in history.
Yahoo was also forced to admit last year that its ad revenues had suffered a double-digit decline on the previous year.