Yahoo is expected to confirm data breach of its servers, which is said to affect close to 200 million user accounts. According to ReCode, there is likelihood of government investigations and legal action in the matter. The website quoted sources from the company who said the situation is serious, given several million accounts have been compromised. Yahoo is expected to make the announcement this week.
“But there’s nothing smooth about this hack, said sources, which became known in August when an infamous cybercriminal named “Peace” claimed on a website that he was selling credentials of 200 million Yahoo users from 2012 on the dark web for just over $1,800,” the reports said. Yahoo, in August, had said the company is investigating the cyber attack claims.
The report will be a set back for Yahoo’s new parent company Verizon. Verizon is in the process of completing its deal to acquire Yahoo for close to $5 billion. Yahoo will sell most of its internet business which includes YahooMail, Yahoo New, Yahoo Finance, and Sports websites. The Yahoo advertising tools will also be sold off under the deal, according to reports.
Yahoo after the sale won’t be an operating company, and will instead function as a stake-holding company with a 35.5 per cent stake in Yahoo Japan and 15 per cent interest in China’s e-commerce company Alibaba Group Holding Ltd.
Yahoo CEO Marissa Mayer might not have helped with the company’s turnaround, but she will get a $55 million severance package if she loses her job after the sale.