Looks like Yahoo’s one billion users will indeed become part of the Verizon family.
The wireless giant is close to inking a revised a deal to acquire the web portal after negotiating a $250 million discount off its original $4.8 billion purchase, according to a report.
Verizon’s original deal, agreed to back on July 25, has been under intense pressure since Yahoo revealed soon thereafter that it had been the victim of two separate and unprecedented data breaches.
Verizon put the breaks on the deal while it negotiated legal liabilities — and some speculated that the merger could even fall apart.
But the two sides appear to have patched things up, according to Bloomberg, which first reported about the new, reduced price deal.
Yahoo shares were trading up 1.5 percent, to $45.72, in the wake of the report.
Verizon, in an arms race with rival AT&T, wants to buy Yahoo to give it a major presence in mobile media so it can target youngsters with ads.
AT&T, meanwhile, in the process of acquiring Time Warner’s various brands to super charge its efforts to get into the content business.
Verizon currently owns AOL and wants to integrate Yahoo’s popular sites — Yahoo Finance, Yahoo email, and its technology — into the fold.
Meanwhile, Yahoo is subject to a class action lawsuit filed in January accusing management of making “materially false and misleading statements,” and failing to disclose Yahoo had not encrypted its users information.
The SEC is investigating the timing of Yahoo’s disclosures.
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