Ver­i­zon May Cut Ya­hoo Deal Price by $250-350 Mil­lion

The Economic Times - - Around The World -

New York: 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.

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. Ya­hoo and Ver­i­zon did not im­me­di­ately re­spond to re­quests for com­ment.

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 over­satu- rated wire­less mar­ket. Ya­hoo has been un­der scrutiny by federal in­ves­ti­ga­tors and law­mak­ers since dis­clos­ing the largest known data breach in his­tory. Ya­hoo shares rose 1.6% to $45.76 in morn­ing trad­ing. Ver­i­zon shares fell 0.7% to $47.96.

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