Verizon Revises Yahoo Deal by $250M

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Verizon Revises Yahoo Deal by $250M

Verizon's purchase of Yahoo's core internet arm was put in doubt previous year after disclosure of two cyber attacks.

Verizon's (NYSE:VZ) discount on its $4.8B deal to acquire Yahoo (NASDAQ:YHOO) may amount to as much as $300M, according to reports. After the revelations, several top officials at Verizon said that the hacks would likely "materially" impact that deal and result in a lower acquisition price.

Bloomberg, which first reported news of the revised deal, said the price could be cut by about $300 million. 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. In September, Yahoo disclosed a 2014 hack that compromised 500 million user accounts. Yahoo did not immediately respond to requests for comment.

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Chicago Police Superintendant Eddie Johnson said nobody was in custody but the department has several leads. The shootings mark the latest spasm of violence in a city struggling to deal with such attacks.

Then, in December 2016, Yahoo announced a separate, even more massive breach of user data.

The reported renegotiations follow months of speculation on whether Verizon would attempt to either revise the deal or walk away from the purchase entirely. The acquisition will help Verizon bolster its content strategy as the carrier continues to expand its portfolio past its landline and wireless businesses into the mobile media space.

No matter what happens between now and whenever Verizon and Yahoo do eventually close their sale, one thing is certain: Mayer will not remain on Yahoo's board after the fact. Verizon's shares did the opposite, falling 0.7%.

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