Yahoo is getting sadder and sadder. Verizon is said to be revising its deal with the fallen tech giant. Aside from the revised deal, Verizon Communications Inc. and Yahoo Inc. are also discussing an agreement to partake any future liabilities as a result of two major data breaches Yahoo disclosed after the companies beat their original $4.8 billion deal in July.
Verizon Will Slash Yahoo With $300 Million
Verizon Communications Inc. is very near to closing a revised deal for Yahoo! Inc.’s internet properties. The new agreement would reduce the price of the fallen tech giant by $4.8 billion agreement and make it about $250 to $300 million. This is after the revelation of the security breaches at the web company, according to Bloomberg.
Aside from the discount, Verizon and Altaba Inc., the renamed entity that remains of Yahoo after the deal, are also expected to share any ongoing legal responsibilities related to the breaches. An official announcement regarding the new agreement could come in a couple of days or even weeks. As of today, the revised agreement isn’t final and could possibly change. “It looks like they’re going to get a price cut -- but it’s not dramatic,” said Brett Harriss, an analyst at Gabelli & Co. There is “more certainty around there actually being a sale.”
Yahoo Agreed The Deal After Hacks
Yahoo! Inc. admitted in a few released announcements last year that hackers had broken into their direct we database. As reported by The Register, many Yahoo! customers were affected by this incident because hackers are swiping personal information and hashed passwords. The report also said that the intruders also snatched session cookies to log into the accounts of Yahoo. But Yahoo! moved fast on this, the company released a note last December informing and reminding customers to be alert.
This new agreement could come even though Verizon’s investigation into the transgressions isn’t complete. The executives of the well-known telecommunications company want to move forward despite remarkable and remaining uncertainty to get to work on combining Yahoo with its AOL unit. If the two companies can agree soon on a rumored revised transaction, the deal could close by the month of April.
