The sting will be soothed a bit for some of the yahoo

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The sting will be soothed a bit for some of the Yahoo employees who lose their jobs: A 10 percent surge in the company’s share price on Thursday enhanced the value of their accumulated stock compensation. The layoffs, which were described by a person briefed on Verizon ’s plans, represent about 15 percent of the work force at Yahoo and AOL, the Verizon unit with which it is to be combined. Yahoo, which had 8,600 full-time employees as of 5
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COMPANY XYZ March 31, has already endured many rounds of cuts. During the five years that Marissa Mayer , the chief executive, has led the company, its work force dropped by 46 percent. AOL has also gone through repeated layoffs, most recently in November , when it cut 500 jobs (Goel, 2017). One could say that layoffs are apart of the business model during these times however that statement is met with a lot of criticism. When executive level staff have either resigned or been reassigned to another position, a hefty severance package ensues. A lot of people in the workforce would beg to differ and say those funds could be used in order to retain employment; paying a CEO an absorbent amount of money in their departure hardly seems like a financially sound decision in the midst of a merger. Mergers do no come without their own set of problems, and Yahoo’s recent media troubles regarding hacking was no different. Yahoo , already reeling from its September disclosure that 500 million user accounts had been hacked in 2014, disclosed Wednesday that a different attack in 2013 compromised more than 1 billion accounts. The two attacks are the largest known security breaches of one company’s computer network. The newly disclosed 2013 attack involved sensitive user information, including names, telephone numbers, dates of birth, encrypted passwords and unencrypted security questions that could be used to reset a password. Yahoo said it is forcing all of the affected users to change their passwords and it is invalidating unencrypted security questions — steps that it declined to take in September. It is unclear how many Yahoo users were affected by both attacks. The internet company has more than 1 billion active users, but it is not clear how many inactive accounts were hacked. Yahoo said it discovered the larger hacking after analyzing data files, provided by law enforcement, that an unnamed third party had claimed contained Yahoo information (Perlroth, 2016). This is a company’s worst nightmare in the midst of selling their company; it gives the acquiring company leverage and makes negotiations merciful to the buyer. In this case that mercy cost Yahoo a $350 million dollar reduction in the original asking price. There are many eventful moments that can take place during a merger, and a company of this size is no different no matter how you plan, staff your board, or hire the best 6
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COMPANY XYZ outside consultants; there are bound to be hiccups. Research and strategy will help in minimizing mishaps during this process as much as possible but there is always an unknown factor that could reappear.
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  • Fall '17
  • Yahoo!, Verizon Communications Inc.

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