Wednesday, 29 March 2017

Verizon nears $250m hack discount on Yahoo deal

By Nick Wood, Total Telecom
Thursday 16 February 17

Companies reportedly agree to share any ongoing legal responsibilities stemming from data breaches.

Verizon is close to agreeing a $250 million (€235.23 million) discount on its $4.83 billion purchase of Yahoo, following the latter's damaging data breach disclosures last year…

Verizon is close to agreeing a $250 million (€235.23 million) discount on its $4.83 billion purchase of Yahoo, following the latter's damaging data breach disclosures last year.

This is according to a Bloomberg report on Wednesday, in which sources alleged that Verizon and Altaba – the company that Yahoo will become after selling its core Internet assets to Verizon – have agreed to share any ongoing legal responsibilities stemming from the hacks.

If the report is accurate, then $250 million is a much smaller discount than the $1 billion price cut mentioned in reports in October last year.

Verizon declined to comment.

Yahoo fell victim to major cyberattacks that took place before the Verizon deal was struck but weren't disclosed until afterwards. One attack compromised the personal information of more than 500 million users, while another compromised more than 1 billion users.

At first, Yahoo denied any knowledge of the incidents before the Verizon deal; however, it later emerged that some within Yahoo were aware of them.

In January, Yahoo announced that the expected completion of the sale has been pushed back from the first quarter of 2017 to the second quarter.

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