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Yahoo! Inc. confirmed that information from 500 milion users was stolen. How will this breach affect the $5 billion Yahoo-Verizon deal?
Yahoo! Inc. (NASDAQ:YHOO) confirmed on Thursday, September 22, that information from 500 milion users was stolen by a state-sponsored actor.
In a press release, Yahoo detailed that the information that was hacked my have included names, email addresses, telephone numbers, dates of birth, hashed passwords and, in some cases, encrypted or unencrypted security questions and answers. However, Yahoo did not specify which state it believes was behind the theft.
What is a state-sponsored actor?
State-sponsored actors are hackers sponsored by the government. “Actor” refers to a person or participant in whatever activity is at hand. The Chicago Tribune defines the term “state-sponsored actor” as a hacker working on a foreign government’s behalf. According to Financial Times, state-sponsored hackers are extremely sophisticated and skilled in covering their tracks.
Investigation spurred by Peace
Back in June, a hacker using the moniker “Peace” started advertising what was described as Yahoo user credentials on The Real Deal marketplace. The data, allegedly 200 million records, was being sold for 3 bitcoins, or around $1,860.
Yahoo is now notifying potentially affected users, urging them to reset their passwords and invalidate their security questions.
CNN says that the silver lining to this massive breach is that sensitive financial data like bank account numbers and credit card data are not believed to be included in the hacked information.
How will this breach affect the $5 billion Yahoo-Verizon deal?
In July, Verizon Communications (NYSE:VZ) and Yahoo announced a definitive agreement under which Verizon will acquire Yahoo’s for nearly $5 billion in cash. The deal has yet to close, but is expected to in Q1 of 2017. It is subject to customary closing conditions, approval by Yahoo’s shareholders, and regulatory approvals.
According to BNN, SunTrust Robinson Humphrey Analyst Robert Peck claims that the breach probably is not enough to prompt Verizon to abandon its deal with Yahoo.
Meanwhile, Yahoo’s stock is trending downward. As of 4pm Monday, September 26, the stock has tumbled from $44.81 per share on September 22, to $42.29.
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Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.