Yahoo Breach May Affect Deal with Verizon
The $4.83 billion deal between Yahoo and Verizon could be endangered after Yahoo disclosed a massive 2014 data breach which affected 500 million users.
Yahoo said they had been unaware of the attack when they first signed the deal with Verizon in July. Verizon was not informed of the breach until a few days before it was made public in September.
Late last week, Verizon general counsel Craig Silliman told reporters what many analysts had already predicted–this breach would affect their deal with Yahoo.
“Based on what we know so far, we have reason to believe that Yahoo’s data breach has had a material impact,” Silliman said.
The New York Post has reported that Verizon may seek up to a $1 billion discount for Yahoo’s websites, email service and apps.
Even with this announcement, Yahoo remains confident the deal will go through.
“We are confident in Yahoo’s value and we continue to work towards integration with Verizon,” a Yahoo spokeswoman said.