Verizon’s $4.8 billion deal to acquire Yahoo could be scuttled over Yahoo’s handling of a massive 2014 hack that came to light last week. The New York Post cites sources saying Verizon only learned of the hack last Tuesday, a few days before Yahoo went public with it.
The report quotes a source clost to both parties saying: “Verizon is livid they were not informed during due diligence, and infighting … is impacting the Yahoo deal and this could be the escape clause.”
The hack reportedly exposed information on about 500 million user accounts.
“It is unclear when Yahoo knew of the problem, although several reports said Yahoo Chief Executive Marissa Mayer knew in July of an earlier, separate possible hack,” The Post reports. “That attempted information hijack turned out to be untrue, but Yahoo’s probe eventually tuned up the larger, 500 million account hack.”
The report adds: “Media and tech bankers are already whispering that Verizon wants to get out of the Yahoo deal — and if they do they may pursue Twitter, which is now in play, sources said.”