AOL CEO Armstrong Reiterates Importance of Consumer Trust when Discussing Yahoo! (YHOO) Hack - TheStreet

NEW YORK (TheStreet) --Yahoo! (YHOO) confirmed last week that hackers compromised the accounts of nearly 500 million people. The attack dates back to 2014, however, Yahoo! has claimed that it believes it was "state-sponsored."

Questions began to reverberate about what impact this breach could have on Verizon's (VZ) acquisition of Yahoo!, a deal finalized in July for $4.8 billion.

Verizon's subsidiary AOL's CEO Tim Armstrong joined Monday morning's "Squawk Box" on CNBC to discuss the data breach and the acquisition process between the two companies.

"What we're doing right now is just calmly and methodically going through the situation and looking at it. Since we just found out last week it's the very early stage. We will work with Yahoo! to see what the implications are," Armstrong said.

Another part of the deal currently being worked through is the integration of Yahoo! by Verizon. Armstrong reiterated that is going well and Verizon will work with those employees to rectify the situation.

Armstrong then discussed the importance of consumer trust and the commitment to Verizon shareholders when something of this nature arises.

"Consumer trust is the core basis of the relationship you have because it's easy for consumers to switch Internet platforms. The world has changed, security and data is going to be something that goes one for hundreds of years. I think Yahoo! has tried to do the best job they can. There's no one at Yahoo! who wanted that situation," he explained.

Shares of Yahoo! were lower during early-morning trading on Monday. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

TheStreet Ratings team rates Yahoo as a Hold with a ratings score of C. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, it also finds weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: YHOO

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