Yahoo pushes back timing of Verizon deal after breaches

The US$4.8 billion acquisition, previously set for the first quarter, is now due to close in the second

Verizon’s planned acquisition of Yahoo will take longer than expected and won’t close until this year’s second quarter, the internet company said on Monday.

The US$4.8 billion deal was originally slated to close in the first quarter, but that was before Yahoo reported two massive data breaches that analysts say may scrap the entire deal.

Although Yahoo continues to work to close the acquisition, there’s still work required to meet closing the deal's closing conditions, the company said in an earnings statement, without elaborating.

Verizon has suggested that the data breaches, and the resulting blow to Yahoo’s reputation, might cause it to halt or renegotiate the deal.

In September, Yahoo said a “state-sponsored actor” had stolen details from at least 500 million user accounts in late 2014. As if that wasn’t enough, the company reported another breach in December, this one dating back to August 2013 and involving 1 billion user accounts.

Both breaches were detected months after Verizon announced last July that it would buy the ailing internet company. Reportedly, Yahoo is facing an investigation from the U.S. Securities and Exchange Commission over whether the breaches should have been reported to investors earlier.

The breaches may have shaken confidence in Yahoo’s internet business. But the company has since taken measures, such as password resets, to secure user accounts.

Nevertheless, some user accounts are still vulnerable. On Monday, Yahoo said 90 percent of its daily active users were protected from the breach. That leaves another 10 percent potentially exposed.

Among the information stolen in the breaches were names, email addresses, telephone numbers, hashed passwords and security questions and answers meant to protect the accounts.

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Michael Kan

IDG News Service
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