Yahoo learned that nearly 500 million user accounts were hacked in 2014 as the multi-billion dollar deal for selling core assets of Yahoo to Verizon was about to close. The company believes the rupture had a substantial influence on the value of the sale, triggering speculation that they may be reviewing the deal said general counsel for Verizon, Craig Silliman. Counselors are starting to integrate more of the increasing demand for due diligence around cybersecurity into their mutual practices said Milan Patel, managing director at K2 Intelligence. This integration leaves a little room for the change course as these are done at the tail end of it.
Often companies look at the cyber security of the deal when it is about to close when there is very little chance to negotiate and access possible fixes he added. Verizon publicized the contract about two months before the hack was publicly revealed in last July although the company has not commented on the due diligence of data security practice. Late-game security valuations can place companies at a series drawback even though Patel didn’t discuss the due diligence strategy during the negotiation with Yahoo but he did say it is better done early in the process.