There have been so many data breaches that Yahoo is about to create a record of sorts in the list of big companies being hacked and their data being stolen. The situation is so serious that Yahoo is facing a government inquiry into whether Yahoo should have informed its investors about the data breaches earlier than it did.
Despite all these troubles and revelations that can break the confidence of any other company, why is Verizon still sticking with the deal? The company wants to acquire Yahoo for $4.5 billion although it has shaved off $350 million the original deal.
This Fortune report says it’s all about the user base that Yahoo has. Despite one of the first biggest companies on the Internet being in constant doldrums, it has more than 1 billion users and these users will come handy when Verizon wants to compete with Facebook and Google in the mobile-first digital advertising business.
Yahoo has massive data about its users that use its services for weather information, all in sports news and to run fantasy football leagues. Previously Verizon also required AOL in 2015 for $4.4 billion.