Verizon sale being delayed, Yahoo reveals

It turns out being the victim of the two largest cyber attacks in Internet history might be affecting Yahoo! Inc.‘s sale to American telecom giant Verizon Communications Inc. after all.

The once-mighty search giant announced today while reporting its fourth-quarter results that Verizon’s purchase of its core web operations had been pushed back to the second quarter of 2017, a deal previously expected to close in the first quarter. In a press release from Jan. 24, the company cites the “work required to meet closing conditions” as the cause behind the delay, but that it is “working expeditiously” to close the transaction as soon as practical.

Of course, Yahoo is still recovering from the two massive security breaches made public in September and December 2016, which it notes may be grounds for Verizon to terminate their agreement or renegotiate terms and price. The acquisition was valued at $4.83 billion USD when it was announced in July.

The security breaches, which occurred in 2013 and 2014, are thought to have affected more than one billion Yahoo customer accounts, putting many of their email addresses, account passwords and dates of birth at risk.

That said, the company’s fourth quarter and full 2016 revenue report shows surprisingly minimal declines despite the most recently disclosed hack. In fact, Yahoo reported sales, excluding revenue passed on to partners for web traffic, of $960 million USD, exceeding analysts’ estimates of $907.9 million, according to Bloomberg.

“We continued to build our mobile and native businesses – delivering nearly $1.5 billion [USD] in mobile revenue and over $750 million [USD] in native revenue – while operating the company at the lowest cost structure in a decade,” Marissa Mayer, CEO of Yahoo, said in the report. “With our 2016 and Q4 financial results ahead of plan, and the continued stability in our user engagement trends, the opportunities ahead with Verizon look bright.”

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Jim Love, Chief Content Officer, IT World Canada

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Mandy Kovacs
Mandy Kovacs
Mandy is a lineup editor at CTV News. A former staffer at IT World Canada, she's now contributing as a part-time podcast host on Hashtag Trending. She is a Carleton University journalism graduate with extensive experience in the B2B market. When not writing about tech, you can find her active on Twitter following political news and sports, and preparing for her future as a cat lady.

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