Despite law enforcement agencies buzzing around Yahoo, Verizon finds the core merits of the deal are still intact. However, fresh non-disclosures could scuttle the deal.
With Yahoo coming under renewed scrutiny by the federal law enforcement agencies, a senior executive from Verizon Communications Inc has stated that the company is unsure about its planned acquisition of Yahoo Inc’s internet business.
“I can’t sit here today and say with confidence one way or another because we still don’t know,” said Marni Walden, president of product innovation and new businesses at Verizon.
Walden went on to add, the merits of the deal still made sense despite the fact that certain aspects of the investigations by law enforcement agencies are yet to be completed by them.
However, she did not provide a time-frame for the completion of the deal.
“We think it will take weeks at least, we don’t have a desire to have it drag on forever, that’s not our intent,” said Walden.
Tim Armstrong, AOL’s Chief Executive, has reportedly told CNBC that he expects the Verizon-Yahoo deal to go through.
Verizon acquired AOL in 2015 for $4.4 billion.
With this information hitting the market, Verizon’s shares remained relatively unchanged in late afternoon trading while Yahoo’s shares were up by 3.09%to $41.30.