Yahoo security breach dangerous for Verizon takeover
After Yahoo announced a massive security breach in September that resulted in the leak of 500 million user’s details, they have announced a new, even larger breach on Wednesday. The leaks are seemingly unrelated yet it has not been confirmed who is responsible. To learn more go to: MetaTrader
In the latest breach, Yahoo has confirmed that personal details such as names, email addresses and passwords of over 1 billion users have been leaked. Yahoo has stressed that no financial information was leaked.
Nearly three months ago, Verizon confirmed a deal to acquire Yahoo. Now, that deal is not looking so promising for Verizon and could present hefty financial consequences. According to anonymous staff members of Yahoo, security was not made to be a top priority in the past year.
“As we’ve said all along, we will continue to evaluate the situation as Yahoo continues its investigation,” Verizon said in a statement Wednesday. “We will review the impact of this new development before reaching any final conclusions.”
The first breach was initially viewed as a threat to Verizon’s (VZ, Tech30) $4.8 billion deal to buy Yahoo, given the potential impact on Yahoo’s brand and user retention. This ended up smoothing out for the most part but it is unknown how the deal will be effected by the newest events.
Yahoo’s stock plummeted 2.5% in after-hours trading on Wednesday following Yahoo’s disclosure.