Conflicting statements from Verizon’s senior executives over the acquisition of Yahoo Inc has spurred confusion amongst investors. The news comes weeks after Yahoo revealed its second major data breach.
Last year, Yahoo announced data breaches which exposed account data to internet hackers, affecting over 500 company. The breaches may have significantly reduced Yahoo’s user base, forcing Verizon to re-evaluate their acquisition proposal.
On Thursday morning, Tim Armstrong, CEO of AOL, a subsidiary of Verizon, announced that the deal to purchase Yahoo still had its merits and that it was ‘’on track’’. Conversely, president of product innovation and new business at Version, Marni Walden, announced that Verizon was unsure of the implications the data breaches would have on the purchase of Yahoo. Walden noted that the investigation would have to be completed before the full ramifications of the hacking can be known.
Verizon shares were unperturbed by the news, staying stagnant at $54.64. Yahoo shares rose 3%, regaining some of the losses following the data breach announcement.