Verizon Cuts Yahoo Price Tag by $250 Million
- Author: Patricia Jimenez Feb 16, 2017,
Feb 16, 2017, 0:38
Verizon announced its intention to acquire Yahoo's internet properties past year for $4.8 billion.
Yahoo's two data breaches had cast a shadow over the acquisition for Yahoo's core business that was announced in July before the breaches were disclosed. But, as evidence has mounted that Yahoo was even more compromised than originally thought, some had thought Verizon would demand up to $1 billion in a discount or even dump the deal altogether.
The updated Verizon and Yahoo deal will reportedly be discounted by almost $300 million.
Verizon is reportedly close to cutting the price of its deal to buy Yahoo, signaling that they could complete the acquisition soon. The company is said to be reducing the price of the original offer by as much as $250 million, the scribe says, citing people familiar with the matter. An insider with good knowledge of the scenario predicted the price cut will possibly be close to $250 million - a figure also predicted by Bloomberg this Wednesday.
Verizon declined to comment. Yahoo did not immediately respond to requests for comment. Verizon has been looking to mobile video and advertising for new sources of revenue outside an oversaturated wireless market. However, Yahoo has lagged Alibaba's performance over most of the previous year as its transaction with Verizon was held up. Verizon shares fell 0.7 percent to $47.96.
In September 2016, Yahoo announced that at least 500 million users were affected by a late 2014 cyber-hacking incident led by a "state-sponsored" actor.