With the Verizon deal still waiting confirmation, Yahoo has announced that it will not be holding its quarter earnings webcast reports.
The Verizon – Yahoo sales deal has recently been surrounded by an air of uncertainty as a number of rumors and new information have been putting their mark on the acquisition and raising questions.
After Yahoo reportedly suffered back in 2014 a massive data breach that affected almost 500 million users, information as yet not officially disclosed by the company, Verizon was said to have asked for a $1 billion price drop in their sales contract.
The initial sale deal between the two companies was supposed to account for a $4.8 billion acquisition of the Internet giant, Yahoo, but the new data has put quite a block in sale’s path.
The acquisition, which should close sometimes in 2017’s first quarter, has been put to the test and could depend on Yahoo’s quarter year reports as Verizon has indicated its wish for a full post-breach announcement report.
Craig Silliman, Verizon General Counsel, stated that Verizon believes the data breach to have also had material consequences and expressed his company’s not unaccounted for wish to see a report that will either demonstrate or infirm this belief.
Yahoo has declared through spokesperson Suzanne Philion that the company is confident in its value and that it is working towards signing the Verizon deal.
The company will be announcing its third-quarter results on October 18, after business closes for the day, but will not be hosting its usual webcast or earnings call.
Company representatives Marissa Mayer CEO and Ken Goldman, CFO, would usually hold such calls and webcasts during which the respective quarter earning reports would be made known to investors. Yahoo announced that due to its Verizon deal, they will not be taking place this time.
The company has had a rough few months as hacking and data breaches reports started showing up, with the CEO, Marissa Mayer, being generally held responsible for Yahoo’s descent in status.
Analysts and investors are asking for a new, more competitive approach from the company in the Web content, social media, and analytics domains.
As Yahoo has continued to fall behind its main rival, Google, in the search area and has not developed any new products that would attract new user engagement, Mayer is thought responsible for insufficient funds in this domains, and too many in the noncore assets and in corporate expenses.
All eyes will be trained on Yahoo’s reports as many analysts consider them a turning point in the Verizon deal, one that could either result in a different price mark, or in the actual sale falling through.
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