We recently reported that Yahoo and Verizon were making progress in closing their acquisition deal. The agreement had faced many headwinds, from multiple Yahoo data breaches to circulating rumors about Verizon asking for a huge discount on the deal.
Despite those challenges, the companies remained in negotiations, and sources close to the situation said last week that Verizon could be asking for a $350 million discount and shared responsibility with Yahoo over any legal ramifications connected to recent data breaches.
Now, the Wall Street Journal reports that the companies will cut $350 million off the original $4.83 billion agreement and will evenly split costs connected to the breaches, according to sources. Verizon and Yahoo have not yet formally announced the revised agreement but are expected to in the near future.
Not out of the woods yet
Both companies are facing some pressure when it comes to cementing the deal.
Yahoo has already made plans that it intends to follow through on if the acquisition is successful, including changing the name of its remaining business to “Altaba” and paring down its number of board positions. One source speculated that the company is also eager to sell stakes in Alibaba Group Holding Ltd. and Yahoo Japan Inc.
For Verizon’s part, the deal comes with plenty of positives and negatives. Upon successfully acquiring Yahoo’s internet business, it would be able to expand its mobile media and advertising markets and take advantage of the large user base connected to the Yahoo platform. However, company shareholders are being cautious about doing business after the recent data breaches that affected over one billion Yahoo accounts.
While these same shareholders will ultimately have to approve the revised acquisition agreement, the companies hope that the deal will close by mid-April.