One of the biggest merger deal this year could be pulled off because of the colossal hacking incident over 500 million Yahoo accounts that left the company under investigation by the feds.
Verizon however defended Yahoo and said the deal still makes sense, CNN Money reported. Several government officials and agencies are now investigating Yahoo over the hacking scandal leaving experts at doubt whether the $4.8 billion offer to buy the company's core internet assets will still push through.
Yahoo said there is no assurance that Verizon will still push it. Yahoo is facing potential fines. It's also facing 23 customer class action lawsuits because the hackers were able to steal several data including birthdays, addressed and even password. That's a bad sign for every investor who looks to acquire a new investment.
Yahoo has since insisted that they just learned about the attack but it says otherwise with their recent Securities and Exchange Commission filing. It says there that the company has discovered a state-sponsored hacker who's been getting access from half a billion accounts since 2014, NBC News reported.
A Verizon spokesperson said they will have to investigate further and will possible renegotiate if the impact is material to the future interest of the company. But this statement was released in September. Verizon has yet to address the issue.
On the positive note, Yahoo believes the hacking did no harm to the business potential of the company. It didn't affect their operation. They maintain they're confident in their company's value. They also said they will work forward to integrate with Verizon.
Critics have said Yahoo is on its way down spiral when all of CEO Marissa Meyer's plans did not bring the company to the profitable platform everyone expected. Under Meyer, the company has acquired several startups that are yet to make a profit. They have also hired celebrity journalists in the hopes of making trending stories. But none of these have succeeded so far.
