Yahoo

Definition

Yahoo is an internet services company known for its web portal, search engine, and various online services such as email and news aggregation. In the context of technological crises, Yahoo faced significant challenges including data breaches and service outages, highlighting vulnerabilities in digital infrastructure and the importance of cybersecurity measures for companies reliant on technology.

5 Must Know Facts For Your Next Test

1. Yahoo experienced a major data breach in 2013 that affected over 3 billion user accounts, making it one of the largest security breaches in history.
2. The company's reputation suffered significantly due to its slow response to security incidents, leading to a loss of user trust and confidence.
3. In 2016, another breach was disclosed involving 1 billion user accounts, which raised serious questions about Yahoo's cybersecurity practices.
4. Yahoo's failure to adequately protect user data led to increased scrutiny from regulatory bodies and impacted its acquisition by Verizon Communications in 2017.
5. These crises demonstrated the critical need for robust cybersecurity measures and risk management strategies in today's digital landscape.

Review Questions

• How did Yahoo's data breaches impact its credibility and trust among users?
  • Yahoo's data breaches severely undermined its credibility as a reliable internet service provider. With over 3 billion accounts affected in the 2013 breach and an additional billion in 2016, users lost trust in the company's ability to safeguard their personal information. This erosion of trust had lasting consequences, leading many users to abandon Yahoo services for competitors perceived as more secure.
• Discuss the implications of Yahoo's technological crises on the company's acquisition by Verizon Communications.
  • The significant data breaches experienced by Yahoo directly impacted its valuation during the acquisition by Verizon Communications. Initially valued at $4.8 billion, Yahoo's worth diminished due to security concerns and legal liabilities arising from the breaches. As a result, Verizon negotiated a lower purchase price of $4.48 billion, reflecting the financial repercussions of Yahoo's inability to manage its cybersecurity effectively.
• Evaluate how Yahoo's technological crises illustrate the broader need for enhanced cybersecurity practices across digital platforms.
  • Yahoo's technological crises serve as a crucial case study highlighting the urgent need for enhanced cybersecurity practices in all digital platforms. The vast scale of user data compromised during the breaches illustrates the potential risks that companies face if they do not prioritize security measures. This situation has led to increased regulatory scrutiny across the tech industry, prompting organizations to invest more in cybersecurity infrastructure and strategies to mitigate risks and protect user data effectively.

Related terms

Data Breach: An incident where unauthorized individuals gain access to sensitive, protected, or confidential data, often leading to identity theft or fraud.

Cybersecurity: The practice of protecting systems, networks, and programs from digital attacks, ensuring the confidentiality, integrity, and availability of information.

Service Outage: A period when a service is unavailable due to technical issues or failures, impacting users' access to online platforms.