Verizon Acquisition Of Yahoo Drawing Near With $250 Million Reduction
Feb 17, 2017 03:50 AM EST
The acquisition of Yahoo is drawing near after the new revision gave Verizon a $250 million price reduction. The original price offered was $4.83 billion, but Verizon has negotiated the amendment of the agreement.
Verizon requested the revision of the agreement after two data breaches was reported wherein 500 million of users data was stolen in 2013. According to Reuters, the new deal will be announced this week, which entail the agreement that both Yahoo and Verizon will share liability from potential lawsuit as the result of data breaches. However, neither Verizon or Yahoo are willing to comment on the report.
Bloomberg reported on Wednesday, Feb. 15 that the possible $250 million reduction in offered price from the $4.83 billion of the original offers is a precaution to deal with the lawsuit and to respond the inquiries from regulators. U.S. Federal Trade Commission, U.S. Securities and Exchange Commission and the Federal Bureau of Investigation are involved in probe of two separate attacks.
Yahoo was once an Internet giant and a front runner in search engine technology in the 1990’s before Google came. Founded by Mark Filo and Jerry Yang, Yahoo grew to become a renowned web portal in the early days of Internet. Yahoo is the pioneer in many Internet services such as email provider, news aggregator and Internet forums.
After Marissa Mayer took over the helm of Yahoo in 2012, the Sunnyvale-based company began to decline very rapidly. The former Google executive has launched some unnecessary and unsuccessful effort to overhaul Yahoo, which brought the company in a downward spiral.
The cyber attacks in August and December 2013 occurred during Mayer tenure as the CEO. Prior to that, Yahoo never had a serious security issue. Her failure after failure has prompted the sale of the company that won by Verizon in July 2016.
Verizon has requested to revise the terms of acquisition to anticipate the legal aftermath of the data breaches. Watch the report from USA Today regarding Verizon’s renegotiation deal of Yahoo acquisition below: