Verizon Wants 'Major Concessions' From Yahoo: Reports

It still might abandon the deal, add sources
By Arden Dier,  Newser Staff
Posted Dec 16, 2016 11:47 AM CST
Verizon Wants 'Major Concessions' From Yahoo: Reports
A Yahoo sign at the company's headquarters in Sunnyvale, Calif.   (AP Photo/Marcio Jose Sanchez)

Verizon is still interested in acquiring Yahoo after the largest data breach at an email provider—just not at the price initially agreed upon, a source tells Bloomberg. Verizon, which agreed to pay $4.8 billion for Yahoo in July, has a team exploring the possibility of a lower sale price after Yahoo revealed an August 2013 hack affected 1 billion accounts, including those of FBI agents and White House staff, says the source, who acknowledges that trying to kill the deal isn't off the table. It isn't clear what kind of discount Verizon might seek, but TechCrunch notes there were rumors of a $1 billion price cut after Yahoo's other hack in September. Bloomberg's source says the team also wants Yahoo to assume responsibility for the latest hack, meaning Verizon wouldn't be on the hook for any future legal issues.

But that doesn't mean Verizon might not still abandon the deal altogether, even while its integration team continues its work, the source says. A source tells Reuters that Verizon has threatened to try to wiggle out of the deal in court if it isn't granted "major concessions." A business professor notes the most likely scenario is that Verizon might ask Yahoo for some form of compensation after the deal closes. In a statement Wednesday, Verizon says it "will evaluate the situation as Yahoo continues its investigation" and "review the impact of this new development before reaching any final conclusions." Adds Yahoo, "We are confident in Yahoo's value and we continue to work towards integration with Verizon." (More Verizon stories.)

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