Published: Thu, February 16, 2017
Hi-Tech | By Lula West

Verizon is reportedly looking for a $250 million price cut on Yahoo

Verizon is reportedly looking for a $250 million price cut on Yahoo

The leaks did not affect Yahoo!'s fourth quarter earnings, with the company reporting profits of US$162 million, compared to a loss of US$4.43 billion in the corresponding quarter a year ago.

Although Yahoo last month said the deal to sell to Verizon is delayed but still on, the Web pioneer continues to court controversies, which reportedly has Verizon second-guessing.

Yahoo Inc. (YHOO - Free Report) shares rose 1.62% to $45.75 in afternoon trading Wednesday. But after that deal was announced, Yahoo revealed a series of data breaches where it lost hundreds of millions of customer email addresses and other personal information.

Verizon is close to a new deal with Yahoo that could see the telecom giant purchasing the beleaguered Internet company for a slight discount of $250 million, according to Bloomberg News. Yahoo did not immediately respond to requests for comment.

Verizon declined to comment on either report. The December disclosure concerned account details of a billion users and occurred in August 2013. In September, Yahoo confirmed a 2014 security breach that impacted more than 500 million user accounts on its network. Verizon is said to have realized that the wireless communication market is moving towards saturation and is thus looking forward to new sources of revenue, like mobile videos and advertising. Some analysts warned that even if Verizon moved ahead with the deal, it would still face the possibility of discovering further lapses in Yahoo's security for years to come. Verizon's shares did the opposite, falling 0.7%.

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