Verizon-owned Oath is pitching a service to advertisers analyzing AOL and Yahoo emails to provide targeted ad data, according to The Wall Street Journal.
The order on Yahoo from a secret court last year resulted from the government's drive to change decades of interpretation of the Fourth Amendment right of people to be secure against 'unreasonable searches and seizures.'
The top American wireless carrier still expects to go through with the deal, but is looking for 'major concessions' in light of the most recent breach.
It was not clear why there was such a marked decline in the proportion of women leaders at Yahoo, which is led by Silicon Valley's most powerful female CEO, Marissa Mayer.
Verizon has had preliminary briefings from Yahoo but it still needs 'significant information' from the company before it makes a final decision on the acquisition.
The company complied with a classified U.S. government demand to look through millions of accounts at the behest of the National Security Agency or FBI, sources say.
It was not clear how such a disclosure might affect Yahoo's plan to sell its email service and other core internet properties to Verizon for $4.8 billion.
As commodity markets continued dealing on Friday, traders were lamenting the imminent demise of the version of Yahoo Messenger that has been their main communication tool since the late 1990s.
When senior Yahoo executives gathered at a San Jose hotel for a management retreat in the spring of 2006, there was no outward sign of a company in crisis.
The purchase will boost Verizon's AOL internet business, which it bought last year for $4.4 billion, as it gains access to Yahoo's ad technology tools.