Verizon may want a $1 billion discount on Yahoo

Negative press about Yahoo may be taking a toll on its value

Verizon may be getting cold feet with its acquisition of Yahoo. Reportedly, it's asking for a $1 billion discount on the original $4.8 billion deal for the Internet company.

Recent news about Yahoo's massive data breach and its alleged secret email scanning program has diminished the company's value in the eyes of Verizon, according to a Thursday report by the New York Post.

Tim Armstrong, the head of AOL, which Verizon acquired in 2015, reportedly has met with Yahoo executives about reducing the acquisition price.  

"He’s pretty upset about the lack of disclosure and he’s saying can we get out of this or can we reduce the price?" the report said, quoting what it called a source familiar with Verizon's thinking.

Verizon declined to comment on the report.

Experts have also said that Verizon may choose to back out of the deal after Yahoo revealed last month it had been hacked in 2014. That massive data breach may have stolen information from at least 500 milllion user accounts.

At the time, Verizon said it had only learned about the breach two days before Yahoo disclosed it publicly.

The negative press about Yahoo ramped up again earlier this week when a Reuters report claimed that the company had been secretly scanning the incoming emails of all its customers for U.S. intelligence purposes. 

Yahoo has called the Reuters report misleading. Privacy advocates said the spying may have been so broad that it was unconstitutional.  

Yahoo didn't immediately respond to a request for comment on the New York Post story.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?