On Thursday, Verizon revealed that they might request a renegotiation of the $4.8 billion deal for Yahoo. This comes three weeks after the company suffered the biggest data breach in history. Specialists anticipated that this was going to happen, but it seems like Verizon is moving quickly.
The reasons are there
Verizon General Counsel Craig Silliman said that the financial impact over Yahoo might make the company lose some users. All of this happens after millions of accounts have been stolen and now, people are skeptical about their internet safety. He explained how right now it would be a good time for them to renegotiate the deal and to win back the users’ trust.
Even if many had anticipated this move, it is the first time that Verizon is going public with their doubts about the acquisition of Yahoo. And Silliman declared that if they want to prove that the breach is not that severe as initially thought, Yahoo must work a lot. And even if the deal is supposed to be closed in the first part of2017, Verizon is willing to wait a bit longer if it is necessary. But if Verizon reaches the conclusion that the breach has impacted Yahoo very strongly, they can give up on the deal.
A long awaited chance
On the other hand, Yahoo is not worried about this at all. The company issued a statement in which they are explaining that things are not so bad. They really want to work with Verizon towards a collaboration and are willing to do everything they can in this regard. And this is understandable as Yahoo has failed to adapt to the newer requests of Internet technology. So their move towards Verizon could be the chance they were waiting for.
The breach was discovered two years later
The data breach happened two years ago but it was only discovered (or made public at least) three weeks ago. Back then, Yahoo put the blame on state-sponsored hackers who wanted to steal personal data. And even if them discovered the breach in July, Verizon found out about the problem at the same time as anybody else, in September.
Verizon’s chief executive explained that they do not back away from Yahoo’s acquisition. They just want some explanations and the proof that the breach did not go any further than they said. Also, they are willing to renegotiate the deal in order to balance the situation. Yahoo has also started an investigation to discover the source of this huge data breach. Until this investigation is finished, Verizon was put on hold. Only after that, they will know for sure what the next step is. Reportedly, Verizon wants to ask Yahoo for a $1 billion discount.
Yahoo’s explanation which has at its center some state-sponsored actors points fingers towards Russia. It is a widely known fact that the Russian hackers have managed to enter various agencies’ data bases and websites across Europe and the U.S. Sometimes, those attacks were meant to destroy the profiles of famous people or to reveal sensitive information.
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