Uh, yes. Look at the first sentence of the article:

"Verizon Communications Inc. is exploring a price cut or possible exit from its $4.83 billion pending acquisition of Yahoo! Inc., after the company reported a second major e-mail hack affecting as many as 1 billion users"

From what I understand there's a clause in the deal that allows Verizon to walk away if Yahoo was hiding something "material" from them.

http://www.wsj.com/articles/material-adverse-change-clause-i...

I think it's more than just bad press, it's more liability.