Verizon close to Yahoo deal, price cut of $250-350 mln -sources

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By David Shepardson and Jessica Toonkel

<span class="articleLocation”>Verizon Communications Inc is close to a
revised deal to buy Yahoo Inc’s core internet business
for $250 million to $350 million less than the original agreed
price of $4.83 billion, according to a source briefed on the
matter.

Since last year, Verizon had been trying to persuade Yahoo
to amend the terms of the acquisition agreement to reflect the
economic damage from two cyber attacks. A source told Reuters
that the deal, which could come as soon as this week, will
entail Verizon and Yahoo sharing the liability from potential
lawsuits related to the data breaches.

Another person familiar with the situation said the price
cut was likely to be around $250 million, a figure that
Bloomberg reported earlier on Wednesday.

A representative from Verizon declined to comment. Yahoo did
not immediately respond to requests for comment.

“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 hopes to combine Yahoo’s search, email and messenger
assets, as well as advertising technology tools, with its AOL
unit, which Verizon bought in 2015 for $4.4 billion. Verizon has
been looking to mobile video and advertising for new sources of
revenue outside an oversaturated wireless market.

But Sunnyvale, California-based Yahoo has been under
scrutiny by federal investigators and lawmakers since disclosing
the largest known data breach in history in December, months
after disclosing a separate hack.

The U.S. Securities and Exchange Commission has launched a
probe into whether Yahoo should have disclosed the breaches,
which occurred in 2013 and 2014, sooner, according to a report
in the Wall Street Journal last month.

Yahoo shares rose 1.2 percent to $45.55 in early afternoon
trading. Verizon shares fell 0.7 percent to $47.93.

(Additional reporting by Anjali Athavaley in New York)



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