You will be redirected back to your article in seconds

Verizon to Reportedly Cut Yahoo Price Tag by Up to $350 Million

UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports.

Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then Reuters cited a source saying Verizon was negotiating to reduce the acquisition by $250 million to $350 million.

The expected price cut comes after Yahoo issued two disclosures about massive user-data breaches last year — after Verizon had clinched the takeover deal. Verizon plans to combine Yahoo with its AOL division, hoping to gain greater audience and digital advertising scale between the two once-powerhouse internet properties.

Verizon and Yahoo declined to comment on the reports. In previous statements, the telco said it has been monitoring Yahoo’s ongoing investigation into the security breaches.

Also under the preliminary agreement, Verizon and Altaba Inc. — the name Yahoo will adopt following the sale of the web assets — will share “any ongoing legal responsibilities related to the breaches,” Bloomberg reported, which cited anonymous sources.

Last month, Yahoo said in announcing fourth-quarter 2016 results that it expects the Verizon deal to close in the second quarter of 2017 (after originally pegging it for Q1). The two hacks Yahoo disclosed had forced an additional review of the acquisition and delayed the closing. In September 2016, Yahoo announced that information on at least 500 million email accounts was stolen by “state-sponsored” hackers in 2014. That was believed to be the biggest-ever data breach on record until December — when the company disclosed that data from more than 1 billion user accounts was stolen by an unknown party in 2013.

Separately Wednesday, Yahoo notified some users that hackers may gained unauthorized accessed to their accounts in 2015 and 2016, as the Associated Press first reported. Attackers using forged “cookies” — bits of web code that store user information — could have accessed Yahoo accounts without a password, according to a company rep. The company at this point has sent notifications to most of the potentially affected users.

Yahoo CEO Marissa Mayer, in the event the Verizon deal closes, is expected to join the telco at least for an interim transition period. AOL CEO Tim Armstrong will assume oversight of the combined AOL-Yahoo group. Armstrong said in an interview last month with Variety that Mayer is “in a mode where she wants to see them through to the next iteration. Then depending on what the next phase is, we’ll make a decision [about her future role].”

If and when the Verizon deal is completed, Mayer will resign from Altaba’s board along with six other members including former chairman Maynard Webb. Yahoo appointed ex-Broadcom CFO Eric Brandt chairman effective Jan. 9. The new Altaba Inc. will primarily be an investment-holding company whose major asset will be shares of China’s Alibaba Group.

More Digital

  • homepod-white-shelf

    Apple Started Working on HomePod in 2012, Was Blindsided by Amazon Echo (Report)

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

  • Amazon Echo Show, Black, Kitchen Counter

    Amazon's Echo Show Regains YouTube Access, Also Gets Vimeo and Dailymotion Videos

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

  • HQ Trivia App

    HQ Trivia: How the Buzzy Live Quiz-Show App Plans to Make Money

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

  • Game of Thrones Season 7

    U.S. Officials Charge Iranian Hacker With HBO Server Attack, $6 Million Extortion Scheme

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

  • Judah Smith

    Amazon Pilots Talk Show With Judah Smith of City Church in Beverly Hills (EXCLUSIVE)

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

  • League of Legends Championship Series North

    Ten Franchise Teams for 'League of Legends' North American eSports League Unveiled

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

  • mozilla social vr

    Mozilla Lays Out Plans for Web-Based Social Virtual Reality

    UPDATED: Verizon is close to reaching an agreement with Yahoo to shave as much as $350 million off the $4.8 billion the telco previously agreed to pay for Yahoo’s internet businesses, according to reports. Bloomberg reported Wednesday that Verizon was cutting the price by $250 million; the Wall Street Journal later reported that discount would be $300 million. Then […]

More From Our Brands

Access exclusive content