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February 16, 2017

Verizon could get price cut in Yahoo deal following data breaches

Both parties said to share legal responsibilities related to the cyber breaches.

By CBR Staff Writer

Verizon Communications is expected to close a revised agreement to acquire Yahoo at a reduced price, between $250m to $350m less than the original $4.8bn offer.

The price reduction follows the revelation of two major security breaches at Yahoo in recent years, where more than one billion user accounts were compromised.

Bloomberg reported the lower offer citing people familiar with the matter, who additionally claimed that both parties in the deal are expected to share legal responsibilities related to the cyber breaches.

Reuters reported that the final price reduction could be as high as $350m. The announcement about the new agreement is expected to come in a matter of days or weeks and the revised deal is not final and might still vary.

Verizon announced plans in July 2016 to acquire Yahoo for $4.83bn.  The deal will cover Yahoo’s core internet business and some real estate assets.

Last month, Yahoo said it expects the deal to be closed in the second quarter of this year as it requires more time to finish the work needed to meet closing conditions.

The telecoms giant is looking to integrate Yahoo’s search, email and messenger and ad tools with the AOL unit, which it acquired for $4.4bn in 2015. marissa mayer

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The US Securities and Exchange Commission launched a new investigation to discover whether Yahoo should have reported its two massive data breaches sooner to investors.

Two Republican senators are demanding more answers from Yahoo Chief Executive Marissa Mayer about the data breaches.

Yahoo sent new warning to users about malicious hacks on their accounts between 2015 and 2016.

A Yahoo spokeswoman said the investigation has identified user accounts for which the company believes forged cookies were taken or used.

“Yahoo is in the process of notifying all potentially affected account holders. Yahoo has invalidated the forged cookies so they cannot be used again.”

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