Published: Thu, February 16, 2017
Markets | By Lucia Cruz

Yahoo rallies on report that revised Verizon deal is close

Bloomberg reports that as per people familiar with the matter, Verizon is now offering Yahoo a price of $4.6 Billion instead of the previously promised $4.83 Billion.

Two massive Yahoo security breaches that came to light in 2016 spurred Verizon's move, reports Bloomberg. The deal also ensures that the leftovers of Yahoo's operations from the deal will be renamed Altaba Inc. and the combined company will have to deal with the legal responsibilities linked to the breaches.

Verizon is reportedly close to cutting the price of its deal to buy Yahoo, signaling that they could complete the acquisition soon.

The leak disclosed in September involved about 500 million user credentials and took place in late 2014.

So a year ago we noted how Verizon proposed paying $4.8 billion to acquire Yahoo as part of its plan to magically transform from stodgy old telco to sexy new Millennial advertising juggernaut, which, for a variety of reasons, isn't going so well.

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It was extensive hacking, first reported by Recode late past year, that caused a snag in the closing of the deal for the telco giant to buy Yahoo.

More negotiations continued and it was determined that Verizon would acquire the Internet giant for $250 million less than what the original deal dictated. Yahoo didn't respond to an immediate request for comment.

Looks like Yahoo's one billion users will indeed become part of the Verizon family. Though the deal was tentatively said to be reached during the first quarter of 2017, it will be delayed to the second quarter. AOL CEO Tim Armstrong will assume oversight of the combined AOL-Yahoo group.

Yahoo's stock rallied Wednesday on the report that a deal to change the terms could be close, jumping 1.8 percent by 8:30 a.m.

But Verizon's plans for Yahoo ran aground after Yahoo disclosed a string of data breaches that analysts say are among history's largest.

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