But even if the telecommunications giant is getting cold feet about buying the once-iconic internet company, backing out of the deal makes little sense, said analysts who spoke with CNBC.
"If you believe that the ad technology is part of the play and you believe that access to a billion users is valuable, then I believe [Yahoo] still has value," said Greg Portell, lead partner at management consulting firm A.T. Kearney. "For all of Yahoo's flaws, you're not going to find a property that has a billion users that you are going to pick up for [less than] $5 billion. The deal's economics were good at the start of this. So, if Verizon is able to knock off a billion dollars and get protection against user data exposure, it's better for them."
As Verizon attempts to become a larger digital media and advertising presence, there are very few companies that it can acquire to grow technology and scale at that size and especially at that $4.83 billion price tag, Portell points out.
Twitter's market capitalization was about $12.43 billion in October 2016, and its 317 million monthly active users pale in comparison to Yahoo's billion. Vice Media, which has expressed interest in selling itself, has nowhere near the same audience, and comes with an almost $5 billion valuation. And, for comparison, if the AT&T-Time Warner deal goes through, it will cost the telecommunications company $85.4 billion.