Verizon reportedly looking for a $1 billion discount on Yahoo
New York Post sources claim recent security and privacy revelations have diminished Yahoo's value.
Back in July, Verizon (the parent company of Engadget) agreed to acquire (most of) Yahoo for $4.83 billion, and normally, that would be the end of things. However, since then, Yahoo confirmed it suffered a massive security breach in 2014, and reports claim that its security chief quit last year after discovering its participation in bulk US government surveillance of incoming emails. Now, the New York Post cites multiple sources claiming that executive Tim Armstrong is upset about the lack of disclosure and seeking to get out of the deal or cut the price.
Armstrong is reportedly in discussions with Yahoo executives over what to do next, while they push back against attempts to lower the price. The deal is supposed to close early next year, merging Yahoo's advertising, content, search and mobile operations with AOL to reach some 1 billion users. Will that still happen? It's unclear, but at this point, we don't know what may come out next.
