Yahoo is not in a good place right now. They are still in the middle of their negotiations with Verizon for the selling of the company. The problem is that the recent problems with hacking and the stealing of personal data from the users might just cost them. A lot. We are talking about money here. Reportedly, Verizon now want Yahoo to make them a discount. $1 billion. That is some discount, mind you! The original deal was supposed to be $4.8 billion.
A lawyer’s opinion is that what Verizon asks for is totally understandable and normal. He thinks that the key is going to be the original contract and what Yahoo actually disclosed before the signing.
Last month, Yahoo publicly disclosed the hacking problem that their company is facing. It affected at least 500 million users worldwide. Names, email addresses, birthdates, security questions and passwords. All of this sensitive and personal info has been stolen from users. Yahoo quickly blamed the attack on a state-sponsored pawn. The worst part is that most people use the same identification data for multiple websites. So the breach might be even larger than initially thought. It can affect the security of many users’ accounts all over the internet.
It happened in 2014
Yahoo revealed that the data breach actually happened in 2014. They reportedly only discovered it recently. This might be a little bit bizarre given the fact that Yahoo is one of the, if not, the largest company of its kind on the market. What kind of people do you hire Yahoo? When the new broke, everyone said that this breach was going to affect the deal with Verizon. By the looks of it, they were right. The Securities and Exchange Commission has been asked to investigate Yahoo cybersecurity representations. This incident could seriously affect people’s trust in the company. But there’s more.
Yahoo spying for Intelligence Agencies?
This week, Yahoo was accused of scanning and giving personal information about some users’ accounts to an U.S. Intelligence Agency. Senator Mark Warner was blamed for this. Reportedly, he could not refuse the agency and asked the team to create a scanning program. But the problem is that this was made without the permission of Yahoo’s security agents. If this is correct, we might have a bigger problem than the security breach, Yahoo. What is actually interesting is that the company has called those reports “misleading” but they were in no hurry to deny them.
All in all, Yahoo should be glad that Verizon is still closing the deal, even with that discount they are requesting. In a normal world, your buyers should know about every flaw and problem that the company they are buying faces. We bet that Verizon did not know a thing about the breach. But wait, Yahoo did not know as well, and it’s their company! Concluding, this whole situation does not seem entirely right. Not for Verizon, nor for Yahoo. But we should not forget that deals like these usually take months before they are closed. Yahoo, make that discount! Until it’s not too late!
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