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Verizon Wants a $250 Million Discount on Yahoo Sale
Posted February 15, 2017
Verizon Wants a $250 Million Discount on Yahoo Sale
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By Jayson Derrick. Updated February 15, 2017 9:14AM

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Shares of Yahoo! Inc. soared to a new 52-week high of $46.72 Wednesday morning following a report that Verizon Communications Inc. (NYSE: VZ) is close to finalizing the acquisition of Yahoo's internet properties.

Verizon agreed to acquire Yahoo's internet properties last year for $4.8 billion but regulatory scrutiny on a data breach reportedly put a pause to the deal.

According to a Bloomberg report on Wednesday, the two companies are close to finalizing a new agreement in which Verizon would pay $250 million less than the original $4.8 billion agreed.

Background

Yahoo said in September 2016 that personal information of more than half a billion users was stolen in 2014. The company followed up in December when it acknowledged that a breach in 2013 impacted more than one million accounts.

The pending deal between Verizon and Yahoo was originally expected to close in the first quarter of 2017 but pushed to the second quarter. In addition, the two companies renegotiated the deal but some Wall Street analysts brushed off any concerns and suggested that the final price tag of the deal would be adjusted by 2 percent.

The Bloomberg report on Wednesday did cite "people familiar with the matter." Benzinga reached out to both Verizon and Yahoo. At time of publishing, Verizon responded with a "declines to comment."

© 2017 Benzinga Lightning Feed syndicated under contract with NewsEdge/Acquire Media. All rights reserved.

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John S:
Posted: 2017-02-16 @ 3:29am PT
If I was Verizon I would walk away from this deal immediately. It's clear Yahoo was purposely not disclosing these breeches and they didn't even protect or inform their users. Yahoo is a company that has lost all credibility in my view. Verizon would be wise to not absorb all these problems as theirs.

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