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Yahoo's recent troubles could cost a billion dollars

Yahoo's recent troubles could cost a billion dollars
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Have you been keeping up with all of the issues Yahoo has been dealing with recently? The tech company's troubles were first reported not long ago when a massive data breach from 2014 could have impacted up to 3 billion of its users.

Then we found out about Yahoo allegedly complying with a government security agency's request to spy on all incoming emails. It turns out those issues could end up costing the company a pretty hefty amount of money.

Earlier this year, Verizon agreed to purchase Yahoo for $4.8 billion dollars. Now, the "New York Post" says Verizon is getting cold feet about the deal and may ask for a reduction in price. Verizon could be looking to cut as much as $1 billion off the purchase price.

The "Post" says Verizon believes Yahoo's value has been diminished by the recent negative reports. AOL CEO Tim Armstrong has been in meetings this week with Yahoo executives to try and secure a price reduction. (AOL is a subsidiary of Verizon.)

Recent Yahoo troubles

  • Massive data breach - When the Yahoo breach from 2014 was first reported a few weeks ago, an estimated 500 million users were affected. However, an anonymous former executive with Yahoo told Business Insider that the data breach could have actually affected up to 3 billion accounts. The exec said that Yahoo's back-end system is organized in such a way that the number of compromised accounts could be much larger than reported.
  • Hidden email scan - Former Yahoo employees told Reuters that the company secretly built a custom software program last year. The program was used to scan all Yahoo customers' incoming emails for specific information for U.S. intelligence officials. Yahoo was complying with a classified U.S. government request that came from either the National Security Agency (NSA) or the FBI. Hundreds of millions of Yahoo Mail accounts were allegedly scanned.

What you should do next

Even if you don't have a Yahoo account that you know of, you may still be affected by the data breach if you use any of these Yahoo-owned services:

  • Tumblr, a blogging service
  • Flickr, a photo sharing site
  • Play Fantasy Football via Yahoo Sports
  • Using your Yahoo account to access Yahoo-branded services like Yahoo Messenger, Yahoo Shopping, Yahoo Music, etc.
  • Smart TV using Yahoo Smart TV services (usually associated with the Vizio brand)

If you have any of these accounts, please review your credentials as soon as possible and secure your account by changing your passwords. Click here to find out how to change your credentials on these other accounts.

If you decide to close your Yahoo account, here are instructions on how to delete it.

Keep checking our Happening Now section for updates on the Yahoo purchase by Verizon. Both companies have elected not to comment on the deal yet.

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Source: USA Today
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