Yahoo! in Trouble....Again
Yahoo! is back in the news again, this time for two different reasons, both not good for Yahoo!. Once again Yahoo! is revealing another breach, and Verizon has reshaped the deal between the two.
Yahoo! broke the news, that between 2015 and 2016, that "forged cookies" where used which let let hackers access user accounts without a password, all per CNBC. This breach stems from the investigation into the 1 billion Yahoo! accounts hacked in 2013 and 2014. Very easy to say Yahoo! hasn't been having the best of luck this decade.
Due to all these data breaches that Yahoo! has been dealing with, it has been highly speculated that Verizon was going to slash the deal of their merger with Yahoo! It appears they are doing just that, according to Forbes Verizon is cutting the deal by $300 million. After the news of the new breach, that was probably the icing on the cake for Verizon. Here is more on this matter per CNBC:
Verizon has three big reasons to slash the price of the deal, Yahoo! should honestly be ashamed of themselves for letting three big data breaches to occur. Whatever the case, Verizon will be inheriting a mess and maybe potential lawsuits because of these breaches. One should be confident in Verizon to turn Yahoo! around, or just make all the negative go away and have Yahoo! be a step stool for Verizon, which it probably will be. Yahoo! after the deal anyhow plans to rename the company to Altaba.
Yahoo! stakeholders should be disappointed and worried, because who knows what information was taken and how the hackers benefited from the hacks. If you had a Yahoo! account and used it frequently, there is a better chance than none that you were breached in some way, shape, or form.
Verizon did exactly what they needed to do, reprice the deal and it's almost certain Yahoo! is going to accept it, why wouldn't they? If Yahoo! would reject the new price and Verizon walked away from the deal, Yahoo! would either have to self destruct or be absorbed by Alibaba.
Although, it is surprising that Verizon is only cutting around $300 million off the deal; with all these breaches Verizon could probably shave $500-$750 million off the deal and still seal it. Who knows, maybe tomorrow, Verizon may do just that.
Yahoo!'s stock took a hit today as Verizon's stayed rather stagnant, but up a tad. You can check them out below, both per Google, and click for a larger image:
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