Archive for Yahoo

Verizon/Yahoo Deal To Take $350 Million Haircut

Posted in Commentary with tags on February 21, 2017 by itnerd

The news is out this morning that Verizon’s purchase of horribly insecure Yahoo is going ahead. But with a $350 million discount due to the latter’s inability to not get pwned by hackers:

Under the amended deal, Yahoo will be responsible for 50 per cent of any cash liabilities incurred following the closing related to government investigations and lawsuits related to the breaches. Liabilities arising from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo.

“The amended terms of the agreement provide a fair and favourable outcome for shareholders,” said Marni Walden, Verizon executive vice-president and president of product innovation and new businesses. “It provides protections for both sides and delivers a clear path to close the transaction in the second quarter.”

The security breaches raised concerns that people might decrease their usage of Yahoo e-mail and other digital services that Verizon is buying. A smaller audience makes Yahoo’s services less valuable because it reduces the opportunities to show ads – the main reason that Verizon struck the deal seven months ago.

You have to wonder why Verizon would even bother with this seeing as these breaches, one of which was as recent as last week, keep happening. There must really be something that Yahoo has that Verizon really wants as I would have pulled the plug on this mess ages ago. But Verizon doesn’t see things that way. And that’s why we’re here. It will be interesting to see if anything else happens that encourages Verizon to finally walk away from the deal.

 

 

Advertisements

Yahoo Pwned By Hackers AGAIN

Posted in Commentary with tags on February 17, 2017 by itnerd

It is clear that Yahoo can’t keep its infrastructure secure as the company has had to admit that they’ve been hacked once again. The Hacker News has details on the hack which apparently doesn’t require require your password for hackers to pwn you. What’s even worse, the report says that “state sponsored attackers” are behind this. Affected users are being notified by Yahoo and there is no clear indication of how many users have been pwned.

Thus it’s no shock that Verizon who still wants to buy Yahoo despite all of this, wants a $250 million haircut to close the deal.  Personally if I were Verizon, I’d scrap the deal entirely. There’s nothing of value here given that Yahoo is a complete disaster from everything that I see here.

In the meantime, I will be visiting a client who apparently can’t get into her Yahoo e-mail in the last few days. I am hoping that this is not related to this hack. But anything is possible. Update to come.

UPDATE: The customer was one of the people affected by this. She had Yahoo force a password change which locked her account until she made the change. I helped her do that on her computer and iPad and now she’s back in business.

Yahoo Being Investigated By Feds Over Epic Hacks

Posted in Commentary with tags on January 23, 2017 by itnerd

It seems that Yahoo is under investigation by the Security & Exchange Comission because of the fact they may not have disclosed the facts behind two epic hacks. Reuters has the details:

Yahoo said in a November 2016 quarterly filing that it was “cooperating with federal, state and foreign” agencies, including the SEC, that were seeking information and documents about a “security incident and related matters.”

The SEC is investigating whether two massive data breaches at Yahoo should have been reported sooner to investors, the Wall Street Journal reported on Sunday, citing people familiar with the matter.

An SEC spokesman declined to comment. A Yahoo spokesman directed Reuters to the company’s November filing.

Seeing as Yahoo has just been bought by Verizon, they may be having buyers remose ase the SEC tends to swing a pretty big hammer when it comes to this sort of thing. It will be interesting to see how painful the SEC makes it for them.

Yahoo Sold To Verizon… Will Change Name… Mayer Is Out

Posted in Commentary with tags , on January 9, 2017 by itnerd

Well, the gong show that is the sale of Yahoo to Verizon seems to be over. Here’s what’s going to happen now according to the Wall Street Journal:

  • The Yahoo board will eventually cease to exist.
  • Yahoo CEO Marissa Mayer and co-founder David Filo are gone from their posts. The former will remain with Verizon after the deal is done.
  • Yahoo will change its name to Altaba.
  • Eric Brandt will become chairman of Altaba

  • Verizon will pony up $4.8 billion

What’s left of Yahoo after the sale will just be an investment holding company. Changing it’s name to Altbaba gets rid of the fact that the Yahoo brand is tainted. But the thing is that I can’t believe that Verizon paid $4.8 billion. Not only that, Who came up with Altbaba as the name for this dead horse? 

Verizon may regret this purchase. But I am naturally a cynic. Still, this is a watch and see thing.

Verizon Might Be Looking For Discount Or Exit From Yahoo Deal

Posted in Commentary with tags , on December 15, 2016 by itnerd

Yesterday, I posted a story on Yahoo disclosing a second hack that is literally twice as bad as their first hack. At the time, I said this:

The fact that Verizon could continue to talk of a deal after the last Yahoo breach is amazing. If Verizon continues with an additional billion accounts being hacked, it shows that neither the market nor the establishment can penalize egregious data loss. 

Well, it seems that Verizon is looking for either a deep discount or an exit strategy from this deal. Here’s what Bloomberg has to say:

While a Verizon group led by AOL Chief Executive Officer Tim Armstrong is still focused on integration planning to get Yahoo up and running, another team, walled off from the rest, is reviewing the breach disclosures and the company’s options, said the person, who asked not to be identified discussing private information. A legal team led by Verizon General Counsel Craig Silliman is assessing the damage from the breaches and is working toward either killing the deal or renegotiating the Yahoo purchase at a lower price, the person said. One of the major objectives for Verizon is negotiating a separation from any future legal fallout from the breaches. Verizon is seeking to have Yahoo assume any lasting responsibility for the hack damage, the person said.

That has to be bad news for Marissa Mayer who is CEO of Yahoo. The brand because of the first hack took a serious ding to its reputation. This second hack will eviscerate what’s left of their reputation. That will make the company next to worthless and I doubt that Mayer could come up with a strategy to recover from that.

To quote Dr. Leonard “Bones” McCoy, Chief Medical Officer of the starship Enterprise: “He’s dead Jim.”

BREAKING: Hackers Have Pwned Yahoo TWICE

Posted in Commentary with tags on December 14, 2016 by itnerd

It’s happened again to Yahoo. Over ONE BILLION accounts have been reported as being hacked. Here’s what CNET is saying:

The stolen data included users’ names, email addresses, telephone numbers, dates of birth, and encrypted passwords. Those passwords are scrambled up with an encryption tool called MD5, which experts say is possible to crack with some patience. The data also included some security questions and answers, some of which weren’t encrypted.

“Yahoo is notifying potentially affected users and has taken steps to secure their accounts, including requiring users to change their passwords,” the company said in a statement. “Yahoo has also invalidated unencrypted security questions and answers so that they cannot be used to access an account.”

The hack revealed Wednesday occurred in August of 2013.

This is after Yahoo disclosed that they were hacked to the tune of half a billion accounts last year.

All together now. Whiskey Tango Foxtrot?

If that’s not shocking enough, Verizon is still talking about buying Yahoo, a process that they started last year. Though Verizon did give the deal a billion dollar haircutThe fact that Verizon could continue to talk of a deal after the last Yahoo breach is amazing. If Verizon continues with an additional billion accounts being hacked, it shows that neither the market nor the establishment can penalize egregious data loss. 

Expect Yahoo to get some scrutiny from congress again.

Verizon Believes Yahoo Email Hacking ‘Material’ And It Could Affect The Sale Of Yahoo

Posted in Commentary with tags on October 13, 2016 by itnerd

In the aftermath of disclosure of a mega-breach at Yahoo which affects over 500 million users, Verizon may be looking at a way out of Yahoo’s $4.83 billion acquisition deal:

Verizon’s general counsel Craig Silliman told reporters the data breach could trigger a clause in the deal that would allow the U.S. wireless service company to not complete it.

“I think we have a reasonable basis to believe right now that the impact is material and we’re looking to Yahoo to demonstrate to us the full impact. If they believe that it’s not then they’ll need to show us that,” he said, declining to comment on whether talks are under way to renegotiate the purchase price.

Clearly you have to believe that this deal is in deep trouble. VERY deep trouble. Do not be shocked if this you start to hear more about this in the coming days and weeks in a negative way if you’re cheering for Yahoo to be sold.

I am sure that there is more to come on this front.