Back in December, Yahoo came under renewed scrutiny after disclosing the largest known data breach in history, prompting Verizon Communications to demand better terms for its planned purchase of Yahoo’s internet business. According to Erik Gordon, a professor at the Ross School of Business, renegotiating the deal’s price tag would be the simplest but also least likely scenario because the impact of the data breaches will not be apparent for some time. A more likely concession would be for Yahoo to agree to compensate Verizon after the close of the deal, based on the liabilities that occur. Yahoo shares fell more than 6% after it announced the breach affecting more than 1 billion users, which followed another large hack reported in September.Verizon has threatened to go to court to get out of the deal if it is not repriced.
