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Verizon seeks $1B discount on Yahoo deal after confirmed hacking reports

Yahoo’s woes are not over yet. As we learned last week that Marissa Meyer, CEO Yahoo agreed to the orders of a secret Foreign Intelligence Surveillance Court to scan emails for terrorist signatures without involving Yahoo security specialists, here comes another breaking news. Verizon wants $1 billion discount on yahoo deal after confirmed spy, hacking reports.

The pressure is mounting on Yahoo after it disclosed its biggest data breech of half-billion customer records in 2014. Its recent revelation of spying and hacking is costing the company a pretty penny. Recently when Yahoo was about to finalize its deal for its sale to Verizon, the company demanded something really heavy. According to reports, Verizon asked Yahoo for a discount in the payment.

The deal was supposedly finalized on $4.8 billion but Verizon asked for a $1 billion in discount. It is a significant reduction in the amount of payment for Yahoo.

The news of Yahoo’s data breech is considered to have reduced the web giant’s value. After the news of stealing identities, password and other information of 500 million users around the world, rumors started to build up against Yahoo. According to the sources, the secret Foreign Intelligence Surveillance Court ordered Yahoo to carry out scanning of the emails for any possible signs of the terrorists. The agency requested it to create custom mail-scanning software without even disclosing the news to Yahoo’s security engineers.

It might be extremely difficult for yahoo to retain its previous position. Tim Armstrong is very upset to hear the surprising things about Yahoo so far. He was really impressed by Yahoo’s deep rooted technical culture and wants to get out of this situation.

Tim Armstrong has been in meetings recently with Yahoo executives for price reduction issues. If the deal closes then Yahoo/AOL will reach to one billion customers whereas aim is to reach two billion until 2020. According to many sources, Yahoo’s team is trying hard not to reduce the price at any cost. Yahoo is reportedly stressing on the deal which was signed with $4.8 million and is in no mood of negotiating on the reduction of price with Verizon. Next Yahoo board meetings are going to take place in the coming weeks but the discussion over discount is not going as expected by Verizon.

Verizon actually wants $1 billion reserve as a liability for the recent Yahoo’s data breaches. The company wants to hold funds because they are not sure what comes next in Yahoo’s case. According to Ross Levinshon, who is the former CEO told sources that he would always prefer to store some amount of cash against the deal or would definitely ask yahoo for a discount. But both Yahoo and Verizon have declined to say anything about the ongoing situation.

Via: NyPost

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Written by Hisham Sarwar

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