Yahoo rallies on report that revised Verizon deal is close
Feb 16 2017
A $250 million haircut for Yahoo shareholders could be a relief, given that reports previously said Verizon wanted a $1 billion price reduction in the deal price.
So previous year we noted how Verizon proposed paying $4.8 billion to acquire Yahoo as part of its plan to magically transform from stodgy old telco to sexy new Millennial advertising juggernaut, which, for a variety of reasons, isn't going so well.
While Verizon executives have since said it would be evaluating the implications of the breach and the subsequent investigation, it was unclear whether Yahoo or Verizon was aware of the scope of either large-scale hacks before inking the acquisition deal. The New York Times later reported that the discount may be closer to $300 million.
Since Verizon's deal to purchase Yahoo's core business was made public, Yahoo has disclosed two different major data breaches. 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.
Yahoo and Verizon did not immediately respond to requests for comment. Some analysts warned that even if Verizon moved ahead with the deal, it would still face the possibility of discovering further lapses in Yahoo's security for years to come.
That follows weeks of tense talks after a pair of massive data breaches were revealed by Yahoo, affecting 500M and 1B users respectively. Verizon and Yahoo are now deciding how each will share future liabilities for the cyber attacks.