Verizon Communications Inc is close to a revised deal to acquire Yahoo’s core internet business for about $250-300 million less than the original price of $4.83 billion, Reuters reported citing a source familiar with the topic.
Verizon has been trying to explain Yahoo since last year that the original terms of the acquisition have to altered, Especially after the economic change from the two major cyber attacks. The deal which could close by the end of this week, will state that both the companies will share the liability from potential lawsuits related to the data breaches.
“Maybe this isn’t quite as much of a discount as initially thought, but it’s at least something,” said Dave Heger, senior equity analyst at Edward Jones.
Verizon plans to integrate Yahoo’s search, email and messenger assets, also the advertising technology tools, with its AOL unit, which Verizon bought in 2015 for $4.4 billion.
But lately Yahoo has been facing criticism by the federal investigators and lawmakers since the data breach in December, only a few months after the company disclosed as a separate hack.
The U.S. Securities and Exchange Commission has launched a probe regarding Yahoo disclosing the deal much later, because the hacks took place in 2013 and 2014. Yahoo Inc’s shares went up by 1.5 percent to $45.69 in afternoon trading. Verizon shares dropped 0.7 percent to $47.93.