Yahoo Could Confirm 'Massive Data Breach' Which Impacted Hundreds Of Millions Of Users: Recode

Recode, citing "several sources close to the situation," reported Thursday that Yahoo! Inc. (NASDAQ: YHOO) is expected to confirm it has been the victim of a "massive data breach" involving hundreds of millions of users.

Yahoo said earlier in the summer it's investigating a data breach in which a hacker claimed to have accessed 200 million user accounts and personal details were being sold online. However, one of Recode's sources is now saying that the latest data breach is "worse."

Recode said the hack was first uncovered in August when "Peace" put up for sale on the dark web users data, including user names, decrypted passwords, birth dates and other email addresses, for just over $1,800.

Recode added that Yahoo's confirmation of a data breach could also "bring untold headaches" to its new owner, Verizon Communications Inc. (NYSE: VZ). In addition, these "untold headaches" could also lead to an adjustment to the $4.8 billion Verizon agreed to pay to buy Yahoo's core business.

And then there is Yahoo CEO Marissa Mayer whose inability to turn around Yahoo's core business eventually led to the outright sale of the company. Recode suggested the data breach just adds "another blemish" to the executive's record.

Despite Recode's report, shares of Yahoo were trading higher by more than 1.5 percent Thursday morning and shares of Verizon were higher by nearly 0.50 percent.