Yahoo Security Breach May Put $4.8B Verizon Deal In Jeopardy

Yahoo Security Breach

The surprising breach was announced Sept. 22 and is thought to be the biggest one for a lone email provider. It also increases the other problems facing Yahoo such as losing traffic, advertising revenue and users both to Facebook and Google.

Many Internet commentators that the hack would have been even more devastating if people still used Yahoo. There is some truth to this, but there are still millions of folks worldwide who use it for their email service as well as some of its other services. Today, they’re at risk for identity theft or something worse.

Yahoo had already been seeing a severe drop in its email traffic even though CEO Marissa Mayer tried to upgrade the service to attain user loyalty. In July 161 million folks around the world used Yahoo email on their personal computers – this is a 30 percent drop from July 2014. During this time, Gmail service, operated by Google, saw its user base increase nine percent to roughly 429 million.
The consequences of the breach could affect the deal the company has with Verizon, which is set to close at $4.8 billion.

What Will The Impact Be On Verizon

Some people may second guess using any of Yahoo’s service, which means its deal with Verizon could be on thin ice. The Verizon/Yahoo deal was struck two months ago, but closure isn’t supposed to happen until next year.

This gives Verizon time to renegotiate the price or back out entirely if the company feels the breach will hurt the Yahoo business. And, this could occur if users start to turn around from Yahoo or file a lawsuit because they’re upset about their personal information being stolen.

From Verizon, the company is not yet privy to all the information about the hack and an investigation is going to continue to see if the deal should continue for its shareholders, customers and consumers.

Basically, this means Verizon will take some time to assess what’s going on and if they should plan on continuing the deal.

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