"Hemant Bhargava, professor of technology management at University of California-Davis, and Northeastern University law professor Andrea Matwyshyn discussed the implications of the data breach at Yahoo on the Knowledge@Wharton show on Wharton Business Radio on SiriusXM channel 111. (Listen to the podcast at the top of this page.)
Here are five key takeaways from their discussion:
Impact on the Verizon Deal: “With the extra negative reputation of the data breach, many users will defect, and Verizon may want to rethink the value of the deal,” says Bhargava. He pegs the liability cost of the breach at between $25 and $200 per user. Verizon, which is buying only Yahoo’s operating assets, may insist that the Yahoo entities that it is not buying foot that liability bill, he adds. “At the very least, the reputation effect on users and the defection of users will cause some rethinking” of the firm’s valuation.
“This kind of data valuation is partially art as well as science,” says Matwyshyn. She notes some experts project a drop of between $100 million and $200 million on Verizon’s purchase price for the Yahoo assets."
- Date Published:09/27/2016
- Original Publication:Knowledge@Wharton