Verizon may call for new Yahoo negotiations after hack

A top lawyer for Verizon Communications has said that it is looking into reopening talks with Yahoo over its proposed acquisition of the internet company, after the disclosure of the hack of 500 million email accounts.

Verizon had agreed to pay $4.8bn for Yahoo's core business, but are said to be seeking a discount as a result of the 2014 hack, as well as the news that the company complied with a directive from US intelligence services to search its customers' accounts.

Craig Silliman, general counsel for Verizon, told reporters in Washington that they have "reasonable basis" to believe that the impact of the hack will affect the value of Yahoo.

"I think we have a reasonable basis to believe right now that the impact is material, and we're looking to Yahoo to demonstrate to us the full impact," Silliman said. "If they believe that it’s not, then they’ll need to show us that."

The data breach has been described as the largest ever committed at a private company, and is currently being investigated by the authorities after Yahoo claimed it originated from a "state-sponsored" entity.

Yahoo have said that they believe their value to be that which was originally agreed with Verizon, in the deal which was expected to close early next year.

"We are confident in Yahoo’s value and we continue to work towards integration with Verizon," the company said in a statement.