14 DAY TRIAL // Wonder how much two massive data breaches might cost? Well, it seems that for Yahoo it could be around $350 million.
According to sources speaking to ReCode, Yahoo's deal with Verizon might have dropped by up to $350 million after the two most massive data breaches in history were exposed by Yahoo last year. The $4.8 billion price tag the two companies agreed upon was expected to take a dive, even though Verizon officials were reserved in expressing just how they truly felt about the situation.
What's more, the fault for any unexposed security breaches that Yahoo might have suffered over the years will be Altaba's liability to deal with. This pretty much means that Verizon is washing its hands off the whole deal. Altaba, if you didn't know, is the name of the leftover company after Yahoo moves over to Verizon.
A downhill race
The problems at Yahoo seem to never reach an end point. Starting with the rocky financial situation they've had over the past few years, to failed attempts to put the company back on track, and culminating with the two largest data breaches in history - one exposing 500 million accounts, and another affecting 1 billion accounts.
Then, the emails announcing users that their accounts might have been accessed by hackers without a password, thanks to some "forged cookies," are still being opened as it was only hours ago that they started coming in. According to the email, the company suspects that the same team of hackers that were responsible for the 2014 data breach that affected 500 million accounts are behind this new breach.
These massive data breaches have put Yahoo in a tight spot. The deal with Verizon was supposed to be closed this quarter, but it was pushed back until the middle of the year. Additionally, the company is under investigation by the SEC for taking too long to report the data breaches to shareholders, while the US Senate demands to get some answers about the extent of the breach.