Back in September, a shockwave coursed through the global online community when Yahoo disclosed an unthinkable breach. The cyber-attack appeared to have impacted 500 million users, as data such as telephone numbers, birthdays, email addresses, and even passwords were allegedly ransacked. This audacious digital heist has been largely attributed by the US government to economic espionage from foreign adversaries, particularly Russia and China.
In an even more startling revelation, Yahoo has now reported an additional, independent breach that is twice the size of the 2014 incident. With over one billion user accounts believed to have been compromised in a clandestine 2013 breach, this event now holds the dubious honor of being the most extensive in the annals of the internet’s history.
This monstrous breach is the latest controversy trailing Yahoo’s murky waters, which churned notably when Verizon announced a potential $4.83b takeover of the embattled tech stalwart last July. However, sources closely associated with this corporate deal indicate that Yahoo conveniently omitted mention of such significant breaches – a transgression leading some to speculate that Verizon could demand up to a $1b markdown on their original bid. Presently, the whispers around this renegotiation have quieted, but it still remains a potential reality.
In response to this series of unfortunate revelations, a Verizon spokesperson stated, “We will review the impact of this new development before reaching any final conclusions.”
With each damning revelation, the stakes rise for Yahoo, a company already struggling to stay afloat in the competitive tech industry waters. As the trust of users appears to be rapidly eroding, Yahoo could become an even greater liability for Verizon. Renowned cryptologist and security expert, Bruce Schneier, echoed this sentiment to Reuters by stating, “Yahoo badly screwed up…they weren’t taking security seriously and that’s now very clear. I would have trouble trusting Yahoo going forward.”
Prior to Schneier’s statement, users were reportedly abandoning their Yahoo accounts en masse following revelations of alarming security lapses and possible collusion with government surveillance. Reports surfaced in October that Yahoo was among a select group of tech companies that allegedly engaged in activities to facilitate government spying. Yahoo has vehemently denied these allegations. However, the combination of these claims along with the notable security breaches have perceived damage to Yahoo’s brand reputation and added fuel to the rumor mill – with some suggesting Verizon is contemplating a complete renegotiation of their acquisition deal.
One crucial unanswered question remains: When did Yahoo discover these breaches? The company maintains they only found out when law enforcement alerted them. This raises two possibilities, either Yahoo was genuinely ignorant about the breaches, a situation that presents its alarming list of issues, or it was aware and deliberately withheld the information in order to ensure the Verizon acquisition advances. Furthermore, there’s another controversial hypothesis that Yahoo may be manufacturing these issues to precipitate the termination of its low-valuation deal with Verizon, thereby opening a pathway for a more lucrative partnership or acquisition in the future. Though these are conspiracy theories, the truth remains elusive and the tech world awaits the final outcome with bated breath.
In the wake of these controversial events, Yahoo shares experienced a dip of 2.4 percent to $39.91 in extended trading, whilst Verizon’s shares remained fairly stable, closing at $51.63.
Image: CNN Money
Discover more from TechBooky
Subscribe to get the latest posts sent to your email.