BREACH UNLIKELY TO AFFECT YAHOO DEAL
The second major hack of Yahoo user accounts is unlikely to derail Verizon Communications Inc.’s $4.83 billion acquisition of the tech giant, with investors and the public becoming inured to near-daily disclosures of cyberattacks.
Hundreds of U.S. companies fall prey to hackers every year, and, in many cases, the data breaches neither hurt bottom lines nor scare away customers for too long.
“I tend to not feel like these hacks are that big of a deal in the broader scheme of things,” said Michael Mahoney, senior managing director at Falcon Point Capital, which invests in wireless companies.
Within the past few years, hackers have infiltrated Sony Corp., Target Corp., Home Depot Inc., JPMorgan Chase & Co., auction site EBay Inc. and health insurer Anthem Inc.
Almost 1,000 data breaches, including Yahoo’s, occurred in the U.S. just this year, according to the Identity Theft Resource Center.
Yahoo said it’s confident in the company’s value and continues to work toward integration with Verizon. Jim Gerace, a spokesman for Verizon, said the company will continue to evaluate the situation before making any final decisions.