Yahoo's board may be desperate, but that doesn't mean they necessarily believed they were contractually in the wrong here. Verizon only had an out if it could s

Yahoo's board may be desperate, but that doesn't mean they necessarily believed they were contractually in the wrong here. Verizon only had an out if it could show that this event was a "material adverse effect" on the business, which is a very high standard to meet. Verizon likely also preferred to close the deal, and neither company wanted to take the risk of litigating this and losing.