Verizon is renegotiating the deal with Yahoo. This is due to the reporting of largest data breach in history of Yahoo.
Yahoo revealed in September that a hack in 2014 affected 500 million users. In addition, the internet company confirmed a data breach in last December which affected 1 million users.
Following this Verizon is asking Yahoo to shed some amount from the price tag. Verizon wants a cut of $250 million from the original deal price of $4.8 billion. Further, there is another report which claims the discount to be around $350 million.
Following the cyber-attack, Yahoo is unable to dictate the price. Yahoo should see this as a good deal after the biggest data breach. The internet company is not left with any other option other than taking up this deal.
As soon as the deal seals, Yahoo’s CEO Marissa Mayer will step down. The new company will be renamed as Altaba Inc. Yahoo was in same condition when this CEO joined. She improved the services of yahoo but was not able to save it from big mess.
Verizon is buying only the core business of yahoo. Core business includes the internet assets such as its advertising technology, messenger, Yahoo Mail, and Fantasy Sports. The new company formed will share the legal responsibilities of
In addition, SEC is eyeing on Yahoo due to the data breaches. Verizon is still buying Yahoo because it wants big audience for its ads. They believe that big spending may spell big profits. Buying Yahoo is as similar as the acquisition deal with AOL in 2015 worth $4.4 billion. The Yahoo-AOL combo may turn out to be a competitive advantage for Verizon over Google and Facebook. The announcement of latest agreement will be within next some days or weeks. However, the terms can still change.
Also, Yahoo again warns its users of possibility of third data breach.
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