According to latest publications, Internet giant Yahoo! Inc. (NASDAQ:YHOO) has an agreement in place for a price cut on its preliminary $4.8 billion sale to Verizon Communications Inc. (NYSE:VZ).
Telecommunications-Services sector giant Verizon Communications Inc. (NYSE:VZ) acquisition of Yahoo! Inc. (NASDAQ:YHOO) core internet arm was put in uncertainty last year following revelation of two big scale cyber-attacks.
US publications said Yahoo! Inc.(NASDAQ:YHOO) is now settled for a price cut of up to $350 million and decided to share liability with Verizon Communications Inc.(NYSE:VZ) for possible lawsuits.
NEW YORK, NY-based Verizon aims to combine Yahoo’s search, email and messenger properties, as well as advertising technology tools, with its AOL unit. Verizon acquired AOL in 2015 for $4.4 billion.
Verizon comprehends mobile video and advertising as new sources of revenue outside a congested US telecoms market.
Arguably one of the pioneer of internet search providers, Yahoo self-confessed in December 2016 it had been hit by a large cyber-attack in 2013 which affected more than a billion customer accounts.
In the past Yahoo had already disclosed another similar breach done in 2014 that had affected around half a billion users.
Meanwhile all the eyes are on the deal of Yahoo and Verizon, reports said last month that the US Securities and Exchange Commission has launched an enquiry into whether Yahoo should have make known the breaches sooner.
On Wednesday, Yahoo sent a warning to users whose accounts may have potentially been accessed by hackers between 2015 and 2016, as part of a data security issue related to the breach it disclosed in December. Yahoo did not say how many users may have been affected.
Ever since the hacking exposes, Yahoo has concentrated on trying to reestablish confidence in its key search business.
However during the last quarter of 2016 Yahoo! (YHOO) search revenue dropped almost 6%. Though revenue from other segments of the business, the mobile, video, and social advertising units – surged during the period.