In this era where technology is evolving leaps and bounds, with the new technologies like Internet of Things gaining popularity, the vulnerabilities associated with these innovations are also being noticed. Cyber security is the prime concern of organizations of all sizes. On one side we hear major revelations released by organizations like Cablegate where in the name of national security a lot of private information is being compromised. On the other side, we hear news about major It players like Yahoo losing their confidential records to hackers who have been reported to be sponsored by state authorities, which impacted on the HB Swiss online trading. These incidents only come as a validation to support several leaks by Cablegate and other agencies.
The big hack
Yahoo, in 2016 got to know that about 2 years ago, its database was hacked. This meant the loss of user data like the email addresses, names, telephone numbers and even passwords and security question and answers. This was a major blow to Yahoo as such sensitive information could be used to login to various databases. For the users, this meant that a lot of their records were now in the hands of some third party. This meant that they were to expect any unauthorized access of their data unless they took further steps to change the passwords they use on their online accounts.
Impact on Yahoo’s traffic
The impact on Yahoo has not been very bad. Though its reputation did take a big hit, the traffic in the site has not seen a significant drop after the news of the hack was released, though. The news about the hack came in 2016 in the month of September. The amount of traffic remained more or less stable the next 3 months. The user engagement on the site has been pretty normal and its users have continued to access the Yahoo pages and their email accounts. The overall user activity hasn’t seen any major drop since the hack news hit the market.
Verizon deal would be impacted?
User engagement is a crucial factor to measure the success of any business and predict future turnovers. This factor has remained pretty stable for Yahoo even after the hack happened. This meant that the Verizon deal for the acquisition of Yahoo also might not see a big change due to the hack. With Yahoo’s immediate request to the users to change their passwords and secure their account almost 90% of the users have had their passwords changed and their accounts secured. The continued mail activity through Yahoo account also comes as a benefit to Yahoo to finalize the Verizon-Yahoo deal.
But the terms of the deal have been slightly modified by Verizon. Yahoo is also being scrutinized. The core business of Yahoo would be bought by Verizon. But the terms of the deal which were earlier framed are now being altered after the security breach that hit Yahoo. Though the deal would happen, Yahoo would be granting some big concessions to Verizon to complete the deal. The shares of the company have also found to be in a bad position and there have been major drops in the share prices. Though the investors are not very unhappy, thanks to the consistent user engagement and the finalization of the Verizon deal, the stockholders are not very happy.