Verizon reportedly wants big chunk off Yahoo price tag

Verizon reportedly wants big chunk off Yahoo price tag

Verizon-Yahoo deal is being renegotiated as the telecommunications giant wants a big chunk off the price tag for the struggling web company, according to emerging reports.

Citing anonymous sources, multiple news outlets reported that Verizon wants a big price cut of $250 to $350 million from the original $4.8 billion price it offered for acquiring Yahoo.

The reports also suggest that data breaches occurred in 2013 and 2014 that affected more than a billion users prompted Verizon to seek a cut in the original price tag. Yahoo revealed the data breached in September last year.

Brett Harriss, a senior analyst with Gabelli & Co, said, β€œIt looks like they're going to get a price cut β€” but it's not dramatic. [There is] more certainty around there actually being a sale.”

Following the acquisition, Verizon and the Yahoo entity that will exist will share legal responsibilities linked to the data breaches.

Federal regulators are has Yahoo under their microscope due to the same data breaches. Nevertheless, Verizon is inclined on buying Yahoo, simply because it wants a bigger audience to show its ads and earn big profits.