Verizon considers pulling out of Yahoo deal due to hacking

Verizon considers pulling out of Yahoo deal due to hacking
You might remember that this past summer, Verizon spent $4.8 billion to buy Yahoo in an effort to build a strong online presence that takes the company beyond Go90. However, the deal has yet to close and with fresh reports that as many as 1 billion Yahoo accounts have been hacked, there is a real danger that Verizon will decide to walk away from the acquisition.

Verizon has formed different groups to deal with the situation. One, led by AOL CEO Tim Armstrong, is looking at various ways to integrate Yahoo with Verizon. Another group is looking at the hacking and is determining what Verizon's options are. Another team led by Verizon General Counsel Craig Silliman, is examining the fallout and will decide whether Verizon should just walk away from Yahoo, or renegotiate the purchase price. Verizon's goal is to make sure that any financial fallout from the hacking ends up on Yahoo's doorstep.

Verizon, which was hoping to close the deal in the first quarter of 2017, says that the deal still makes sense as the company hopes to build a large mobile media and advertising giant. The Verizon Wireless unit is the largest wireless carrier in the U.S.

In the past three months, Yahoo has disclosed that it has been hacked twice, with the most recent announcement that approximately 1 billion accounts were broken into in 2013. The information that could have been stolen includes names, e-mail addresses, phone numbers, birth dates, passwords and security questions and answers.

source: Bloomberg

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8 Comments

1. Dr.Phil

Posts: 2253; Member since: Feb 14, 2011

Remember when the media touted Marissa Mayer (CEO of Yahoo) as this strong/smart female CEO that was going to be the face of the future? Yeah, I don't think after multiple hacks and all those lavish parties she put on that she should be the face of anything.

3. Mxyzptlk unregistered

This is indeed a huge blemish on her resume. Otoh she is hot.

2. Babadook

Posts: 230; Member since: May 24, 2016

Like how do you go from 500 million accounts hacked to, "Oh wait JK, tac on another 500 million for a total of ONE BILLION hacked". What a joke!

4. Scott93274

Posts: 6025; Member since: Aug 06, 2013

Was it all one big hack? The one that made news yesterday and the one reported a few months back? I think I read that the hacks in question took place a few years back so I don't know if they're separate incidents or this new report is simply informing that it was a significantly larger breach than first thought. Well, it's the difference between 1 billion and 1.5 billion affected users... I think it's time for me to simply close my Yahoo email.

6. Babadook

Posts: 230; Member since: May 24, 2016

There were 2 big Yahoo hacks. A 2013 one that was *thought* to be roughly 500 million (but turned out to actually be 1 billion) and the new one this year.

7. trojan_horse

Posts: 5868; Member since: May 06, 2016

A new Yahoo hack this year? Lmao... I gotta google it now.

5. libra89

Posts: 2221; Member since: Apr 15, 2016

Not surprised. This is a major disappointment.

9. k9luvr

Posts: 122; Member since: Oct 17, 2016

Whats a Yahooo ? Is that a chocolate milk drink? I think it's really nice of them to tell us 3 years later that they we were hacked. It just makes me feel so warm and fuzzy.

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