Yahoo Under Scrutiny After Latest Hack, Verizon Seeks New Deal Terms

Yahoo Under Scrutiny After Latest Hack, Verizon Seeks New Deal Terms

Yahoo Breach

Yahoo Inc (YHOO.O) came under renewed scrutiny by federal investigators and lawmakers on Thursday after disclosing the largest known data breach in history, prompting Verizon Communications Inc (VZ.N) to demand better terms for its planned purchase of Yahoo’s internet business.

Shares of the Sunnyvale, California-based internet pioneer fell more than 6 percent after it announced the breach of data belonging to more than 1 billion users late on Wednesday, following another large hack reported in September.

Verizon, which agreed to buy Yahoo’s core internet business in July for $4.8 billion, is now trying to persuade Yahoo to amend the terms of the acquisition agreement to reflect the economic damage from the two hacks, according to people familiar with the matter.

The U.S. No. 1 wireless carrier still expects to go through with the deal, but is looking for “major concessions” in light of the most recent breach, according to another person familiar with the situation.

Asked about the status of the deal, a Yahoo spokesperson said: “We are confident in Yahoo’s value and we continue to work towards integration with Verizon.”

Verizon had already said in October it was reviewing the deal after September’s breach disclosure. Late on Wednesday, it said it would “review the impact of this new development before reaching any final conclusions” about whether to proceed.

The company declined to comment beyond that statement on Thursday.

Read Full Article Source: Reuters

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