Verizon Finally Gets Around To Telling Yahoo That It Ain't All That

Erica Roy
February 17, 2017

Citing sources familiar with the matter, Reuters and Bloomberg are reporting that Verizon Communications Inc. now plans to buy the former Internet giant for up to $350 million (all figures USD) less than the $4.8 billion it originally promised, thanks to the two high-profile data leaks Yahoo suffered previous year. According to several USA reports, Yahoo have now agreed new terms including a price cut of around $350 million and an agreement to share liability with Verizon for potential lawsuits.

Verizon reportedly hopes to incorporate Yahoo's search, email, messenger as well as advertising technology, with its AOL unit, which the firm acquired in 2015.

Yahoo said in December that cyber-thieves in 2013 siphoned information including users' e-mail addresses, scrambled account passwords and dates of birth.

Earlier in 2016, Verizon announced that it was seeking to acquire Yahoo for $4.8 billion.

As a side note, most outlets have failed to mention it, but Yahoo also owns the popular social network and blogging community Tumblr and the photo-sharing service Flickr.

Yahoo has begun notifying affected customers who may have had their accounts breached by state snoopers via forged cookies, as reports suggest it may be prepared to cut $250m off its agreed sale price with Verizon.

It's not clear at this time if Yahoo CEO Marissa Mayer will still receive her planned severance package of $55 million if the deal goes through. The price dip follows the disclosure of two security breaches at Yahoo in recent years. This is as a result of numerous cases of data breaches and cyberattacks that Yahoo faces that has affected more than 500 million users world-wide.

According to various reports, Verizon is close to revising its deal with fallen tech giant-a move that would slash the price of the deal by about $250 million.

She explained that Verizon, which now owns the Yahoo-like AOL service, would most likely benefit from buying the purple logo company.

Yahoo stocks leapt around 2.5 percent on the news Wednesday morning and remained up 1.66 percent as of 3:45 p.m. ET.

Other reports by VideoGamingPros

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