Verizon only learned about Yahoo’s massive data breach 2 days ago
By Seth Fiegerman
Yahoo users aren’t the only ones digesting the news about the company’s massive data breach.
So is its future parent company.
Verizon said that it only learned this week that Yahoo was hit with a massive security breach. On Thursday, the news broke that “at least” 500 million user accounts had been compromised, likely making it one of the largest hacks in history.
“Within the last two days, we were notified of Yahoo’s security incident,” a spokesperson for Verizon said in a statement provided to CNNMoney. “We understand that Yahoo is conducting an active investigation of this matter, but we otherwise have limited information and understanding of the impact.”
Verizon agreed to buy Yahoo’s core properties for $4.83 billion in late July, just days after reports of a wide-scale security breach first surfaced in the media.
The mega-breach could create a headache for both companies, including damaging press, police investigations, scrutiny from regulators and user outrage.
More to the point: it could complicate a billion-dollar deal that was originally expected to close in the first quarter of 2017.
“It comes down to whether or not there is a meaningful change in use of the platform above and beyond what was happening before,” says Brian Wieser, an analyst who covers Yahoo at Pivotal Research Group.
If the news were to ignite a user exodus, that could take away Yahoo’s key selling point for Verizon: its enormous reach of more than one billion monthly users.
Robert Peck, an analyst with SunTrust, estimates the breach could shave $100 million to $200 million off the closing price of the deal, due to user attrition — but nothing that he expects to be “material” to the overall purchase price.
“Hacks are almost relatively common,” Peck says. “[AOL CEO] Tim Armstrong at Verizon was hacked yesterday on Twitter.”
Robert Varetonni, a spokesman for Verizon, declined to comment beyond the prepared statement.
“We will evaluate as the investigation continues through the lens of overall Verizon interests, including consumers, customers, shareholders and related communities,” Verizon said in the statement. “Until then, we are not in position to further comment.”
Yahoo said it believes a “state-sponsored actor” was behind the data breach, meaning an individual acting on behalf of a government. The breach is said to have occurred in late 2014 and included names, email addresses, phone numbers and birth dates.
The-CNN-Wire ™ & © 2016 Cable News Network, Inc., a Time Warner Company. All rights reserved.
Yahoo says 500 million accounts stolen
By Seth Fiegerman
Yahoo confirmed on Thursday data “associated with at least 500 million user accounts” have been stolen in what may be one of the largest cybersecurity breaches ever.
The company said it believes a “state-sponsored actor” was behind the data breach, meaning an individual acting on behalf of a government. The breach is said to have occurred in late 2014.
“The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers,” Yahoo said in a statement.
Yahoo urges users to change their password and security questions and to review their accounts for suspicious activity.
The silver lining for users — if there is one — is that sensitive financial data like bank account numbers and credit card data are not believed to be included in the stolen information, according to Yahoo.
Yahoo says it is working with law enforcement on the breach.
A large-scale data breach was first rumored in August when a hacker who goes by the name of “Peace” claimed to be selling data from 200 million Yahoo users online. The same hacker has previously claimed to sell stolen accounts from LinkedIn and MySpace.
Yahoo originally said it was “aware of a claim” and was investigating the situation. Nearly two months later, it turns out the situation is even worse.
Re/code first reported Yahoo would confirm the data breach.
The data breach comes at a sensitive time for Yahoo.
Verizon agreed to buy Yahoo’s core properties for $4.83 billion in late July, just days before the hack was first reported. The deal is expected to close in the first quarter of 2017.
Verizon says it only learned of the breach this week.
“Within the last two days, we were notified of Yahoo’s security incident,” a spokesperon for Verizon said in a statement provided to CNNMoney.
We understand Yahoo is conducting an active investigation of this matter, but we otherwise have limited information and understanding of the impact.”
The mega-breach could create a headache for both companies, including damaging press, scrutiny from regulators and a user exodus, just as they’re working to close the deal and figure out the future of Yahoo.
The-CNN-Wire ™ & © 2016 Cable News Network, Inc., a Time Warner Company. All rights reserved.
