Yahoo Finance Yahoo data breach weighs on Verizon takeover
The fallout from the theft of 500 million users' data from Yahoo (NasdaqGS: YHOO - news) may have implications for the €4.8bn (£3.7bn) takeover of its core business, experts have said.
The internet firm revealed the breach on Thursday - saying the information, stolen in 2014 but only uncovered recently, may have included names, email addresses, phone numbers and dates of birth.
It insisted unprotected passwords, payment card data and bank account information was safe, adding it was believed a state-sponsored hacker was responsible.
Verizon (NYSE: VZ - news) , the US telecoms firm which agreed to buy Yahoo's main internet operation in July, said it was alerted to the breach by Yahoo "within the last two days".
In the wake of Yahoo's admission, it said "We will evaluate as the investigation continues through the lens of overall Verizon interests, including consumers, customers, shareholders and related communities.
"Until then, we are not in position to further comment."
The statement suggests the company is prepared to, at the very least, attempt to shelter itself from any additional costs or business damage attributable to Yahoo, including the possible loss of users.
:: What you need to know about Yahoo cyberattack
Corey Williams, from security software firm Centrify, said: "Yahoo may very well be facing an existential crisis.
"Already besieged by business execution issues and enduring a fire sale to Verizon, this may be the straw that breaks the camel's back.
"Since this breach occurred in 2014 and wasn't properly communicated or handled, it may very well give Verizon an 'out' or a reason to renegotiate."
Users who might be affected are to be contacted, asked to change their passwords and to use other ways of verifying their account.
Yahoo is under pressure to release more details on the attack and explain why it took so long to detect.
It is understood that it launched an investigation after claims surfaced around July and August that 280 million Yahoo users' credentials had gone on sale on the black market.
Yahoo did not find any evidence to substantiate the claim but decided to launch a wider probe into the security of its systems, resulting in this week's findings.
