On Friday, it was reported that telecommunications giant Verizon (VZ - Analyst Report) is looking to cut $1 billion off its $4.8 billion offer for Yahoo’s (YHOO - Analyst Report) core business. The New York Post originally reported the story.
This is most likely an after-effect of bad news for the web stalwart over the past few weeks. Yahoo recently revealed that in 2014, it had been hacked, and 500 million accounts—including usernames and passwords—were stolen.
And earlier this week, reports surfaced that claimed Yahoo scanned users’ incoming emails for terrorist signatures for roughly a year, on classified orders from a secret Foreign Intelligence Surveillance Court.
According to unnamed sources, “The discount is being pushed because [Verizon] feels Yahoo’s value has been diminished,” writes the Post. However, Yahoo’s team is pushing for the deal to close sooner rather than later, as well as fighting efforts to negotiate the deal price down in any way.
As a result, YHOO stock is sliding, down just over 1% in midday trading. VZ stock is also down about 0.50% today to $50.02 per share.
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