San Fracisco: If Verizon Communications really wants to renegotiate its $4.8 billion deal to buy Yahoo’s internet operations, it’s probably going to have a fight on its hands.
Yahoo Inc. said on Tuesday that it had actually gained a slight amount of traffic since its 22 September disclosure that about 500 million accounts had been hacked.
That appears to contradict Verizon’s assertion last week that the damage to Yahoo’s business from the breach could’ve been severe enough to set off a provision in the sale agreement that would allow Verizon to reopen the deal.
“We take deep responsibility in protecting our users and the security of their information,” Yahoo’s chief executive, Marissa Mayer, said in a statement reporting the company’s third-quarter financial results. “We’re working hard to retain their trust and are heartened by their continued loyalty as seen in our user engagement trends.”
Yahoo’s overall business in the quarter exceeded Wall Street’s expectations, and the stock rose more than 1% in after-hours trading. The company’s third-quarter revenue fell 15% compared with the previous year, after adjusting for an accounting change. But its profits rose as management cut capital spending and 300 jobs over the quarter.
Citing the pending Verizon deal, Yahoo did not hold its customary conference call with investors to discuss the results. That left many questions unanswered — particularly, what Yahoo has learned from its investigation into the data breach. Reuters