When Verizon agreed just a few months back to acquire the flaming purple wreckage of Yahoo, many were intrigued that a massive telecommunications giant was paying almost $5 billion for a struggling tech company slowly being strangled to death by the management stylings of a painfully hapless CEO.
Sure, Verizon knew that Yahoo's media division was total mess and that CEO Marissa Mayer had overspent more than she could afford on a bunch of acquisitions that ranged from bad to the worst. One would also have to assume that Verizon knew about Yahoo's suicidal deal with Mozilla and the fact that Mayer had taken the parts of Yahoo worth buying (Alibaba stock and Yahoo Japan), and spun them off in a self-abnegating viking funeral. It also stands to reason that Verizon knew that Yahoo was barely breathing and that it was going to be fitting a square peg into a round hole by trying to integrate Mayer's Yahoo into Tim Armstrong's AOL.
So yeah, Verizon was willing to pay $4.8 billion for ALL of that.
But there was something Verizon didn't know about, that massive hack from a few years back...and that's apparently a problem.
The New York company’s brass are mad that Yahoo didn’t notify them sooner of the hack, which exposed information on some 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, before Verizon won the bidding contest.
How Verizon brass is surprised that Yahoo continues to emit death farts we don't know, but somehow they are. And they are reportedly quite pissed.
“Verizon is livid they were not informed during due diligence and infighting … is impacting the Yahoo deal and this could be the escape clause,” said a source close to both parties.
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.
So, yeah, Verizon is so ripshit mad at Marissa Mayer that they're publicly threatening to deal with a more successful CEO...like Jack Dorsey. Take that, Evita Breadsticks.
Having to watch her rabbit out of a hat act disappear if the Verizon deal somehow crumbles would be almost a perfect ending for the reign of Marissa Mayer. Snatching defeat from the jaws of victory has that Mayer flavor, but it's also lacking that certain something...
Yahoo would have to pay some $145 million if the deal somehow falls apart and it is to blame.
THERE it is.