Ver­i­zon says Ya­hoo data breach had a ‘ma­te­rial’ im­pact

Kuwait Times - - TECHNOLOGY -

Ver­i­zon’s top lawyer says it now has rea­son to be­lieve Ya­hoo’s re­cently dis­closed data breach has a “ma­te­rial” im­pact on Ver­i­zon’s pend­ing $4.8 bil­lion ac­qui­si­tion of Ya­hoo. That leaves open the pos­si­bil­ity that Ver­i­zon could seek a change in the price or other terms.

A Ver­i­zon spokesman con­firmed that Craig Sil­li­man, gen­eral coun­sel at Ver­i­zon, made the com­ments to re­porters dur­ing a round­table dis­cus­sion Thurs­day. “I think we have a rea­son­able ba­sis to be­lieve right now that the im­pact is ma­te­rial and we’re look­ing to Ya­hoo to demon­strate to us the full im­pact,” he said.

Sil­li­man didn’t say whether Ver­i­zon will seek a price re­duc­tion, but added that Ya­hoo will have to con­vince Ver­i­zon if it doesn’t be­lieve the breach of at least 500 mil­lion users’ email ac­counts had a sig­nif­i­cant im­pact on its busi­ness.

Ear­lier this week, Ver­i­zon CEO Low­ell McA­dam said his com­pany was in­ves­ti­gat­ing but vowed Ver­i­zon wouldn’t walk away from the deal.

Ya­hoo said in a state­ment Thurs­day that it is con­fi­dent of the com­pany’s value and that it is still work­ing to­ward in­te­grat­ing with Ver­i­zon. The deal was ex­pected to close by the end of March 2017.

The se­cu­rity is­sue could worsen Ya­hoo’s prob­lems: Users were al­ready de­clin­ing, and so was rev­enue. Ver­i­zon had wanted Ya­hoo’s pop­u­lar sites to com­bine with AOL’s ad­ver­tis­ing tech­nol­ogy to help it build a dig­i­tal-ad com­pany that could com­pete with in­dus­try be­he­moths Google and Face­book. Ver­i­zon bought AOL in 2015.

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