The recent date breach issue has Yahoo in a hot seat as this huge issue may affect the $4.8 billion acquisition of Yahoo by Verizon Communication. A month ago, there was a massive cyber-attack against Yahoo and the hack has affected 500 million users. Yahoo president and CEO Marissa Mayer and team proceeded to inspect the unfortunate event and according to CNET, this may be the biggest hack and theft of account information ever. To apply water to the burned area, Yahoo is also being criticized for allegedly supplying the U.S. government with info on its users in the name of tracking down criminals and terrorists.
As for how this may affect the huge acquisition deal between Yahoo and Verizon Communications, according to the Verizon general manager Craig Siliman, the company is still evaluating the impact of the security breach. It is widely believed that this fiasco may materially impact the negotiation for the takeover by Verizon.
On the brighter side of things, Yahoo did gain a significant increasing Profits that may just make up for the hacking fiasco. On October 18, the financial report for Yahoo’s W3 2016 was released and it showed the company’s profits exceeding the expectations of Wall Street. As per the financial report, it seems that Yahoo’s profits have grown by a significant amount, it is now more than double in the last three months, profits rose to $163 million from $76.3 million as compared to the same period last year. Moreover, revenues are up 6.5% to $1.3 billion and as for the shares, it is up less than 1% to $41.95.
Preceding the aftermath of the cyber-attack, Mayer had this to say:
“We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users’ lives”