Yahoo’s new headache: an SEC investigation

The Wall Street Journal's Aruna Viswanatha and Robert McMillan report that the Securities and Exchange Commission has opened an investigation into whether Yahoo erred in how it disclosed two major data security failures to investors.

Why it matters to Washington: There's been political pressure on the SEC to open an investigation into Yahoo's behavior. The SEC's actions could sharpen years-old guidance on how companies need to disclose data breaches, experts told the Journal.

Why it matters to Wall Street: The breaches raised questions about Verizon's proposed purchase of Yahoo's main web assets, and a formal SEC investigation piles on new doubts about the deal.

What they're saying: Very little. Verizon and the SEC declined to comment. A Yahoo spokesman noted that the company said in a November filing that it was cooperating with authorities looking into one of the breaches, including the SEC.